1. Rating and Target Price: Deutsche Bank maintains its "Buy" rating on SpaceX with a target price of $235. Based on the closing price of $148.68 on September 25th, this implies approximately 58% upside potential.
2. Rapid Expansion of Computing Power: SpaceX's computing power will reach 1.4 gigawatts (GW) by the end of 2026, exceeding the company's guidance of over 2GW. Musk disclosed that 220,000 Nvidia GB300 chips will be added this week and fully operational, with another 220,000 added in November and possibly another 220,000 by the end of December. Deutsche Bank estimates that each 220,000 GB300 chips corresponds to approximately 440 megawatts of computing power, thus projecting SpaceX's computing power to be approximately 2.3GW in November and approximately 2.7GW by early 2027. The new computing power will be used for cloud hosting, inference services (Cursor, Grok Bot), and model training (Grok 5). The company is also deploying 3.3 gigawatt-hours of grid-scale batteries to ensure power supply.
3. Cloud Contract Revenue Locked In: Five signed neocloud clients generate approximately $54.5 billion in annualized revenue. Deutsche Bank estimates these contracts utilize 1.2 to 1.4 GW of computing power, corresponding to $40 to 45 billion per GW, placing them at the high end of the industry range of $30 to 50 billion per GW. As more computing power comes online, more large contracts are expected to be finalized. (Deutsche Bank Report, September 28)
