Morgan Stanley forecasts SpaceX’s annual revenue to reach an extraordinary $3.4tn by 2040

Wall Street is placing aggressive bets on the future of Elon Musk's space and artificial intelligence empire, with new projections suggesting that SpaceX could evolve from a launch and satellite company into one of the largest AI infrastructure businesses in the world.

According to a report by the Wall Street Journal, citing people familiar with the matter, Morgan Stanley expects SpaceX's annual revenue to reach an extraordinary $3.4 trillion by 2040, driven largely by explosive growth in its emerging AI operations. The forecast comes as SpaceX embarks on what could become the largest initial public offering in history, seeking to raise approximately $75 billion from investors.

SpaceX's IPO roadshow, which began on Thursday, is attracting intense investor interest as markets search for exposure to the next generation of AI winners. The company occupies a unique position at the intersection of multiple high-growth industries, combining rocket launches, satellite broadband, AI infrastructure, and advanced computing capabilities under one corporate umbrella.

Morgan Stanley's forecasts suggest that SpaceX's AI segment alone could generate roughly $190 billion in annual revenue by 2030. Total company revenue is projected to reach approximately $330 billion during the same period, implying that AI would become one of the company's most important growth engines within just a few years.

Those projections become even more ambitious over the following decade. The bank's estimate of $3.4 trillion in revenue by 2040 would place SpaceX among the largest enterprises in economic history, eclipsing the current revenue base of many of the world's largest corporations combined.

The optimism is not limited to Morgan Stanley. According to a report by the Financial Times, Goldman Sachs is forecasting an even faster acceleration in SpaceX's AI business, estimating that the division could generate $322 billion in annual revenue by 2030. The divergence between the banks' forecasts highlights both the uncertainty and the enormous expectations surrounding the company's future AI ambitions.

These projections are buoyed by the belief that SpaceX can leverage its vast infrastructure footprint, including satellites, data transmission networks, and computing resources, to become a major participant in the rapidly expanding AI economy.

SpaceX's financial performance already illustrates how quickly its business is evolving. Revenue climbed to $18.67 billion in 2025, up from $14.02 billion the previous year, reflecting continued growth across its launch services, satellite operations, and emerging technology businesses.

Yet the figures also reveal the scale of investment required to compete in frontier technologies. The company reported a net loss of $4.94 billion in 2025, reversing a profit of $791 million recorded a year earlier.

Its AI division generated approximately $3.2 billion in revenue during 2025. While still a relatively small portion of overall operations, that figure is increasingly attracting investor attention because it represents the segment expected to deliver the highest future growth rates.

The forecasts arrive amid a broader AI investment frenzy that is reshaping global capital markets. Investors are pouring unprecedented sums into companies building AI models, data centers, networking equipment, semiconductor infrastructure, and energy systems needed to support next-generation computing.

Recent fundraising activity highlights the scale of the boom. Anthropic recently raised capital at a reported valuation of $965 billion and has confidentially filed for an initial public offering. OpenAI is also preparing for a future listing, while AI infrastructure investments by major technology firms continue to reach record levels.

Against that backdrop, SpaceX is increasingly being viewed not simply as a space company but as an AI infrastructure platform capable of serving multiple layers of the emerging AI economy.

However, the projections also come with substantial challenges.

Generating trillions of dollars in annual revenue would require SpaceX to successfully commercialize technologies and business models that remain in their early stages. It would also require sustained growth in AI spending at levels far beyond anything previously seen in the technology sector.

Some analysts have warned that current forecasts across the AI industry may underestimate future competition, technological commoditization, and the possibility that enterprise AI spending eventually moderates after the current surge.

The challenge wields significant weight because much of the AI industry's recent growth has been driven by extraordinary capital expenditures from hyperscalers and large enterprises. Whether those spending levels remain sustainable through the next decade remains one of the biggest unanswered questions facing investors.

Nevertheless, investor appetite for AI-related assets remains strong. Major banks continue to report robust demand for technology offerings, while capital markets have shown a willingness to support large fundraising rounds for companies positioned at the center of the AI ecosystem.