SpaceX Is Up 37% From Its August Low. A $5,000 Investment Could Be Worth This Much by 2028.
SpaceX has a bright future ahead, and it's not from the place you might expect.
Since its IPO in June, SpaceX's stock has experienced significant volatility. After going public at $150, it saw a rapid rise to over $225 before a sharp sell-off pushed it below $100. However, the stock has since rebounded, now trading near its IPO price. For investors with a $5,000 budget, now might be a favorable time to consider purchasing the stock.
SpaceX's growth has been driven primarily by its artificial intelligence (AI) division, Super Intelligence. The company's acquisition of xAI prior to going public marked the beginning of its foray into AI. SpaceX's Super Intelligence segment has shown remarkable growth, with revenue surging 830% in Q3, up from $813 million last year to $7.56 billion this year. This surpasses the 69% growth in its Connectivity segment and the 6% growth in its Space segment.
While the Space unit has been the focus of investor excitement, SpaceX's AI efforts, particularly through its acquisition of Cursor and its AI agent platform, Grok Bots, have driven the company's impressive growth. CEO Elon Musk has been bullish on the company's potential, projecting revenue of $500 billion to $1 trillion by 2027.
Even if we take the lower end of this projection and apply a 10x revenue multiple, SpaceX's valuation could reach $5 trillion by 2028, resulting in a potential return of approximately $12,500 on a $5,000 investment. This projection hinges on SpaceX's AI division continuing to deliver strong growth, a scenario that appears increasingly likely.
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