Google Is Betting a Whopping $94 Billion on SpaceX Stock

Alphabet's (GOOG) (GOOGL) Google has invested $94 billion in SpaceX Corporation (SPCX), marking a 100-fold increase from the $900 million initial investment in Musk’s brainchild. The move places Google as the largest single institutional holder of SPCX stock. 

SpaceX has owners in Nvidia Corporation (NVDA), Advanced Micro Devices (AMD), and Saudi Arabian PIF. With a plethora of post-IPO backers, and Google providing a rare benchmark showing growth in the tech giant’s stake, SpaceX’s stock is expected to hold up well.

Further, Google has a pre-IPO deal with SpaceX to lease about 110,000 GPUs from SpaceX’s AI infrastructure for $920 million a month from October 2026 through June 2029. Musk’s company has a similar deal with Anthropic, showing the popularity it enjoyed prior to it going public. 

Google’s faith in SpaceX signals that a sophisticated, long‑term tech investor sees durable value in the company’s platform. In light of this, we take a closer look at SpaceX…

About SpaceX Stock

SpaceX is an American aerospace and telecommunications company that designs, builds, and flies reusable rockets and spacecraft, operates the Starlink satellite‑internet network, and develops the Starship system for heavy-lift launches and future deep‑space missions. Headquartered at Starbase in Texas, it also runs major facilities in Hawthorne, California and at launch sites in Florida and California. 

After years as a private firm, SpaceX filed for an historic IPO in 2026, listing on Nasdaq under the ticker “SPCX.” The IPO proceeds are earmarked to scale Starship production, expand Starlink’s global coverage, and fund AI‑related compute ventures. Meanwhile, the company continues to dominate commercial launch activity with an industry‑leading flight cadence. The company has a market capitalization of $1.87 trillion. 

Investors have reacted positively as the post-IPO shock smoothed out for SpaceX, while also noting strong fundamentals. They are possibly factoring in its AI and Starlink growth story. Over the past month, the stock gained 12.79%, but it is down 4.31% over the past five days.  

SpaceX’s valuation is exceptionally stretched compared to its peers. Its forward-adjusted price-to-sales ratio of 42.34 times compares with the industry average of 1.19 times. 

SpaceX Q2: Strong Sales Growth Driven by Starlink and AI Cloud Deals

In the second quarter, SpaceX’s revenue increased 91.9% year-over-year (YOY) to $7.81 billion. This was mainly driven by the connectivity segment, which generated $4.29 billion in revenue, up 65.8% from the prior-year period, fueled by strong Starlink subscriber growth from six million to 12 million. However, Starlink’s ARPU dropped from $85 to $66 per month over the same period. 

In the space segment, SpaceX completed two successful Starship V3 flight tests. The company’s space revenues grew 29% YOY to $962 million. It is also working toward full, rapid reusability. SpaceX’s AI segment revenues climbed by a whopping 247.5% to $2.56 billion. The company closed multiple industry-leading Cloud Services Agreements, resulting in $14.10 billion of contracted sales.  

SpaceX’s segment-adjusted EBITDA increased 191.4% YOY to $3.54 billion. The company is spending heavily to expand its operations. Its capex climbed from $2.83 billion in Q2 2025 to $18.37 billion in Q2 2026. 

For the current fiscal year, the company’s loss per share is projected to reach $0.15, followed by a considerable improvement to an earnings per share of $1.53 in the next fiscal year. For the current quarter, SpaceX is projected to earn $0.09 EPS. 

What Do Analysts Think About SpaceX’s Stock?

Recently, UBS analysts reiterated a “Buy” rating on SpaceX’s stock and a $210 price target. Analyst John Hodulik pointed to the company’s status as a leading cloud provider and developer of frontier AI models. UBS expects growth to accelerate as the company reaches critical mass with V3 fixed broadband satellites, likely by next year. 

Argus Research analysts upgraded SpaceX from “Hold” to “Buy” and set a $160 price target. Argus analysts noted the company’s solid operational results after its Q2 earnings. Analysts believe SpaceX's annualized revenue could approach $100 billion by year-end. 

Meanwhile, Wells Fargo analyst Ken Gawrelski lowered his price target to $215 from $230 while keeping a “Buy” rating after the earnings release. The analyst believes the company’s ambitious AI buildout is tied to higher upfront risk and heavier capital spending. 

SpaceX has gained significant Wall Street attention since its massive IPO, with analysts awarding it a consensus “Moderate Buy” rating. Of the 34 analysts rating the stock, 23 have given it a “Strong Buy,” two a “Moderate Buy,” seven a “Hold,” one a “Moderate Sell,” and one a “Strong Sell.” The consensus price target of $222.16 represents a 59.2% upside from current levels. The Street-high price target of $800 indicates a 473.2% upside.