Space Exploration Technologies (SPCX +5.15%) was 2026's hottest IPO, but now that it has gone public and gone through its post-IPO volatility, investors are better able to assess what kind of upside SpaceX stock has. Some investors are even calling for a major price increase in 2027, but is that accurate?
Let's take a look at what a $1,000 investment in SpaceX could be worth by the end of next year, as that could determine if it's worth an investment or not.
Image source: The Motley Fool.
Wall Street thinks it's worth an investment
First, let's check out what Wall Street analysts have to say. Wall Street analysts project one-year price targets for stocks they cover to indicate a general direction they believe the stock is heading. While one projection by itself may be a bit outlandish (the high projection is $450 per share, while the lowest is $62 per share, according to Yahoo Finance), the average gives a useful picture. Among 36 analysts, the average price target is $215 per share -- quite a ways above its current price tag of $150 or so.
That indicates that SpaceX's stock could rise quite a bit in 2027, but is that accurate?
While many investors may be buying SpaceX stock for the space economy and exploration side of the business, I think the real key to its success lies in its artificial intelligence (AI) wing. During the second quarter, AI grew the fastest of all of its divisions, up 213% year over year. If SpaceX is to surpass $200 per share, then its AI division will need to keep up its rapid growth rate and showcase that it's a major competitor in the space. xAI and its Grok model have a pretty wide following, but as AI hyperscalers spend more and more money on computing capabilities, it could push xAI out of its position.
NASDAQ: SPCX
Key Data Points
That remains to be seen, but could SpaceX reach more than $200 per share as some analysts project? I don't think so.
The issue with SpaceX's stock right now is that so much growth is already priced in. For 2026, Wall Street expects $44.7 billion in revenue on average. At today's $2 trillion valuation, that prices SpaceX at 45 times sales. That's a very expensive price tag, and normally companies this size trade for 45 times earnings or less, not sales.
As a result, unless SpaceX can dramatically grow and start producing greater profits, I think a $1,000 investment in SpaceX will be worth just that at the end of 2027: $1,000. There are far better AI stock picks than SpaceX, and I think investors should focus their energy there.
