Raymond James analyst Brian Gesuale initiated coverage of SpaceX with a strong buy rating and a $800 price target, projecting a potential market valuation exceeding $10.5 trillion. This target, representing a 430% increase from current levels, would more than double the market capitalization of Nvidia Corp, currently the world's most valuable company.

Gesuale's projection hinges on aggressive revenue growth, forecasting a jump from $19 billion in 2023 to $5.2 trillion by 2035. This surge is primarily driven by SpaceX's nascent artificial intelligence business, which he expects to grow from $16 billion in revenue this year to an estimated $650 billion by 2031. AI is projected to become SpaceX's largest revenue source by 2027.

The analyst believes SpaceX is building foundational infrastructure for the 21st century, akin to railroads or the internet in previous eras. However, he acknowledges risks, including potential launch failures that could send the stock below its IPO price to $125. Despite this, most analysts remain bullish, with 29 out of 35 tracked by Bloomberg holding buy ratings.