SpaceX's 'Unparalleled' Assets Enable Multiple Drivers of Long-Term Upside, UBS Says

SpaceX (SPCX) has an "unparalleled" set of assets with multiple drivers of upside for long-term investors willing to tolerate risk, UBS said in a Tuesday note initiating coverage of the company's stock. The company's advanced heavy-lift, reusable rocket Starship is the foundational technology that creates opportunities in launch, communications and AI computing power, with a total addressable market of almost $30 trillion, UBS said. Starship would enable SpaceX to become the dominant launch system and give it commercial control over space access over the next decade, with revenue and earnings before interest, taxes, depreciation, and amortization reaching about $660 billion and $512 billion, respectively, by 2031, according to the note. For Starlink, Starship will allow the deployment of next-generation satellites and provide 10 times the capacity at a tenth of the cost. Meanwhile, SpaceX's AI compute deals with Anthropic and Alphabet's (GOOG, GOOGL) Google establishes the company in the AI infrastructure space, and inexpensive access to space paves the way for orbital compute, the note said. Other potential business opportunities for the company include space travel,.