Billionaire investor Ron Baron projects that Space Exploration Technologies Corp. (NASDAQ:SPCX) could reach an unprecedented $14 trillion valuation over the next decade. This astronomical growth will be driven not just by reusable rockets, but by Starlink’s global connectivity dominance and a revolutionary pivot toward zero-emission orbital AI infrastructure, which he dubs “data centers in the sky.”
A Trillion-Dollar Internet Backbone
Baron Capital’s founder, in a video uploaded on the firm’s YouTube channel, outlined a highly lucrative future for Elon Musk’s aerospace company, anchored primarily by its Starlink satellite network. Baron estimates that Starlink will eventually serve as the internet backbone for the entire planet, generating $1 trillion in annual revenue over the next ten years.
He expects this revenue pie to be split efficiently: 40% from government contracts, 40% from enterprise clients, and the remainder from individual subscribers.
“In 10 years, this company from Starlink alone will be worth somewhere around $14 trillion,” Baron stated, noting the segment will generate an estimated $800 billion in annual profits.
Computing Among the Stars
While Starlink provides global connectivity, Baron is heavily banking on SpaceX’s foray into space-based artificial intelligence infrastructure. Traditional terrestrial data centers face immense community pushback over noise, environmental impact, and electricity costs. Space offers an elegant alternative.
By utilizing abundant solar power and natural cooling via giant radiators, SpaceX eliminates utility costs. Furthermore, Baron noted that orbital capital costs drop from $10 per terrestrial watt to just $2 in space.
Dismissing skeptics who claim the technology is a decade away, Baron confidently asserted the timeline for these “data centers in the sky,” stating SpaceX expects them to be operational within just three years.
Long-Term Loyalty Over Quick Profits
Despite recent lock-up expirations triggering short-seller pressure on private shares, Baron remains completely unfazed. His firm has invested roughly $3 billion into SpaceX since 2017, and he refuses to cash out to appease short-term market fears.
“He didn’t give us those shares expecting us as soon as we had a chance to sell to sell. We’re not flippers,” Baron emphasized, reaffirming his lifelong commitment to SpaceX, calling it the single most unique business he has encountered in his 56-year career.
How Has SPCX Performed Since Listing?
SPCX shares fell 7.51% since its listing in mid-June. It was down 4.51% over the last month and higher by 21.14% over the last five sessions. It closed 4.23% higher at $138.74 per share on Monday, and it was down 1.01% in premarket trading on Tuesday.
Benzinga’s Edge Stock Rankings indicate that SPCX maintains a weak price trend in the short, long, and medium terms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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