Jim Cramer’s Take on SpaceX’s Future
Growth Potential in Technology and Infrastructure
Jim Cramer believes that Space Exploration Technologies Corp. (NASDAQ: SPCX) is evolving into a comprehensive technology and infrastructure company. Key offerings like Starlink, AI computing, and Starship are expected to be significant growth engines. On an episode of Mad Money on September 28, he highlighted SpaceX’s GPU business and its recent Starship flight as factors that could greatly increase the company’s long-term value.
AI Computing as a Major Business Opportunity
Cramer emphasized SpaceX’s strategic move to establish a large GPU infrastructure business. He noted that:
“The decision to buy a huge number of GPUs from NVIDIA is already paying off as Elon Musk is renting them out to Google at an $11 billion a year run rate.”
Additionally, SpaceX has secured a deal with Anthropic, estimated at a $15 billion run rate starting in October. Cramer mentioned that these arrangements could lead to around $2.17 billion in monthly compute rentals.
Starship’s Performance and Challenges
Cramer pointed out the successful launch of Starship on September 28, which reached orbit and deployed 26 Starlink V3 satellites. However, it also exposed execution risks, as one of the engines shut down prematurely, resulting in a shortened mission. Despite this, the deployment of all satellites was successful.
Financial Concerns: Capital Intensity and Execution Risks
The major financial challenge for SpaceX is the substantial capital required for its AI infrastructure while supporting Starlink and the Starship program. In the latest results, SpaceX reported $7.81 billion in revenue but spent $18.37 billion on capital expenditures. Notably, AI spending alone reached $15.83 billion, resulting in an operating loss of $1.26 billion despite $2.56 billion in AI revenue.
Market Interest and Valuation
According to Insider Monkey, 119 hedge fund portfolios held SpaceX stock at the end of Q2 2026. However, the company is evaluated through a price-to-sales multiple of 85.5x, reflecting expectations for aggressive top-line growth rather than immediate profitability.
Conclusion
While Cramer acknowledges the potential for SPCX as an investment, he suggests other AI stocks may offer better upside with less risk. The current gap between future growth opportunities and present earnings could prove challenging as the company navigates its heavy investment strategy.
Read Next: Insights on Jim Cramer’s investment suggestions for other stocks facing significant market trends.
Disclosure: No financial interest noted. Follow Insider Monkey on Google News for updates.
