SpaceX’s $1.6 Trillion Opportunity Could Be More Valuable Than Its AI Business

https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/3138532/spacex-s-1-6-trillion-opportunity-could-be-more-valuable-than-its-ai-business/

Publish Date: 2026-07-06 06:22:00

Source Domain: www.theglobeandmail.com

Here are six key points summarizing the article about Space Exploration Technologies (SpaceX):

AI Business Investments and Contracts: SpaceX has secured contracts worth about $28 billion in annual revenue from its AI businesses, targeting a total addressable market of $26.5 trillion. However, its AI segment may not be as profitable or competitive as its other ventures.
Starlink Connectivity Success: SpaceX’s Starlink business generated $4.4 billion in operating income in 2025 and is showing strong subscriber and profit growth. The division aims to provide both satellite connectivity and potentially wireless phone services.
Expansion Into Wireless Phone Service: SpaceX is exploring a move into the wireless phone service market, with plans for mobile services to compete with telecom giants like AT&T, Verizon, and T-Mobile, potentially leveraging Charter Communications’ infrastructure.
Estimated Growth Potential for Starlink: Analysts project that SpaceX’s Starlink could grow to $120 billion by 2036 with a 60% operating margin due to its competitive satellite connectivity service, especially in remote areas, and potential partnerships.
Competitive Challenges and Uncertainties: While SpaceX has secured significant contracts and seen stellar growth in Starlink, it faces challenges such as building a terrestrial network and obtaining necessary spectrum licenses. Competition from established telecom companies is significant.
Current Analyst Opinions: Despite SpaceX’s impressive growth in Starlink, analysts from The Motley Fool Stock Advisor recommend caution in buying SpaceX stock, suggesting alternative high-growth stocks with a proven track record of substantial returns.