Wall Street is providing an unprecedented level of support, with immense scale and enthusiasm, for SpaceX's historic initial public offering.

This past Thursday, Bank of America, JPMorgan, and Morgan Stanley each hosted major client roadshow events. SpaceX President Gwynne Shotwell and CFO Bret Johnsen have been shuttling between major investment banks, personally pitching the deal to thousands of affluent investors.

Simultaneously, research teams at Goldman Sachs and Evercore ISI released highly aggressive forecast reports. They project that revenue from SpaceX's artificial intelligence division could grow approximately 100-fold by around 2030, supporting a target company valuation of about $1.8 trillion. SpaceX has set its IPO price at $135 per share, aiming to raise roughly $74.4 billion. The final pricing is expected on June 11, with trading set to commence on the Nasdaq under the ticker "SPCX".

The sheer size of this offering and the high level of engagement from all parties have captured Wall Street's full attention. Reports indicate that 23 banks and broker-dealers are involved in the IPO sales effort, with underwriting fees alone estimated to exceed $500 million. Analysts note that the major banks not only need to ensure SpaceX's debut is a resounding success but also aim to pave the way and build confidence for the anticipated subsequent mega-IPOs of OpenAI and Anthropic.

Investment Bank Chiefs Lead Roadshows in "Launch Party" Atmosphere

According to reports, Bank of America took the lead on Thursday, transforming the lobby of its Midtown Manhattan headquarters with SpaceX rocket imagery for a private wealth management client event. The bank's co-president, Jim DeMare, was scheduled to host a discussion with Shotwell and Johnsen. The bank also planned to illuminate the spire atop its building to simulate a rocket launch visual effect. Its private bank and Merrill Lynch division invited over 5,000 clients to this "launch party," with a live stream to offices across the United States.

JPMorgan hosted an even more spectacular event at its newly opened, copper-toned headquarters building. The bank's CEO, Jamie Dimon, was reportedly present to support the pitch to investors, joined by Asset & Wealth Management CEO Mary C. Erdoes. At the venue, SpaceX launch videos played on large screens, and "Go for Launch" was projected across the multi-story lobby walls. The event was expected to attract over 2,500 clients in person, with a simultaneous live broadcast to 90 branch offices across 26 U.S. states, marking the largest event of its kind in JPMorgan's history.

Morgan Stanley plans to host a dedicated event for its wealth management clients next Monday, where SpaceX executives will appear alongside lead IPO underwriter banker Kate Claassen and wealth management head Jed Finn. While Goldman Sachs did not host a client event of similar scale, it reportedly displayed SpaceX rocket models in two lobbies at its Lower Manhattan headquarters to show support for the listing.

AI Revenue Forecast for 100-Fold Growth Underpins Trillion-Dollar Valuation Thesis

Wall Street is displaying a similarly high degree of unified optimism regarding SpaceX's future. The Goldman Sachs research team forecasts that SpaceX's total revenue will reach $474 billion by 2030. Within that, revenue from the AI division is projected to soar from $3.2 billion in 2025 to approximately $322 billion by 2030, an increase of about 100 times. Goldman also expects the company's overall adjusted EBITDA to surge from $6.6 billion in 2025 to $352 billion in 2030, achieving positive free cash flow exceeding $72 billion by 2031, compared to a negative $13.8 billion in 2025.

Evercore ISI's projections are equally bold. The firm estimates that SpaceX's AI division revenue could reach $755 billion by 2031, with total company revenue surpassing $1 trillion by that time. Evercore also projects the AI business's share of total revenue will jump from less than one-fifth currently to 74% by 2031, while the rocket business's share will decline from over 20% currently to about 1%.

Both institutions expect revenue from the connectivity business, primarily the Starlink satellite internet service, to grow from approximately $11.4 billion last year to over $140 billion by 2030. Rocket division revenue is forecast to increase from $4.1 billion last year to around $8 billion by 2030, representing a relatively moderate growth rate.

High-Growth Assumptions Face Real-World Challenges

Despite the exciting projections from various parties, some of the underlying assumptions are contentious. The AI growth forecasts are predicated on the condition that SpaceX's Grok series of models must catch up to and surpass more established competitors like Anthropic, Google, and OpenAI in critical areas such as programming, cybersecurity, AI agents, and chatbots.

However, the current reality for the SpaceX AI division, formerly known as xAI, presents significant challenges. Internal turmoil has been reported, with all ten co-founders reportedly departing within two years under Musk's leadership. Market performance of the Grok model has been lackluster, with consumer and enterprise subscriber numbers far from the scale needed to support the projected high revenues. The Colossus 1 data center in Memphis, Tennessee, with 300 megawatts of capacity, has reportedly seen underutilization due to Grok's failure to gain sufficient market traction, leading Musk to lease part of it to competitor Anthropic.

Furthermore, SpaceX did not follow the customary practice of disclosing historical quarterly financial data in its IPO registration documents. A senior IPO market strategist noted that the lack of detailed quarterly data suggests investors should primarily view the company from a long-term perspective. Goldman's valuation model assumes a total addressable market for SpaceX's AI business of $26.5 trillion, vastly exceeding the approximately $2 trillion market size estimated for Starlink and space businesses, an assumption that is itself considered quite bold.