SpaceX, the $2 trillion-plus rocket and satellite company, has been added to the Nasdaq 100 index. This move is expected to unleash billions in passive buying as index funds and exchange-traded funds (ETFs) tied to the Nasdaq 100 will need to buy shares to match the benchmark’s new composition.

Wall Street Coverage

Many brokerages have initiated coverage of SpaceX with broadly bullish views. Morgan Stanley and Goldman Sachs started coverage with their top ratings, with Morgan Stanley dubbing the company “AI’s final frontier.” Other brokerages, such as RBC, Bernstein, and Stifel, have also initiated coverage with their top ratings, betting on the success of Starship, SpaceX’s next-generation rocket.

Investors are awaiting a wave of reports from Wall Street brokerages making their first attempt to value SpaceX as a publicly traded company. The industry-mandated quiet period has ended for analysts at banks that underwrote the blockbuster IPO.

Investor Expectations

Investors are betting SpaceX can evolve into a hyperscale AI infrastructure provider in the near term, using cash generated to fund the development of Grok as it takes on OpenAI’s GPT models and Anthropic’s Claude. They also see significant room for Starlink to expand its dominance in satellite communications, while much of the company’s longer-term ambitions depend on the successful development of its next-generation Starship rocket.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.