Rocket and satellite company SpaceX (SPCX) could be worth as much as $50 trillion in 10 years, according to billionaire investor Ron Baron. That would be about 24 times its current market value of $2.06 trillion. Speaking at Columbia Business School, the founder of Baron Capital said that SpaceX's Starlink internet business could eventually be worth $14 trillion to $15 trillion on its own. However, he believes that the even bigger opportunity is in building AI data centers in space.

Baron has been a longtime supporter of Elon Musk and believes that SpaceX is still in the early stages of its growth, especially when it comes to Starlink. Starlink provides internet access through satellites rather than traditional cables, which makes it useful in remote areas where regular internet connections are unavailable.

The service is growing fast, as it had approximately 12 million subscribers by the end of June, about twice as many as a year earlier. Meanwhile, analysts expect Starlink's third-quarter revenue to reach $4.8 billion, up 12% from the previous quarter.

SpaceX is also preparing to expand into mobile services. Last week, the company announced an $8 billion agreement to acquire wireless spectrum that could help it compete with traditional cellphone providers.

Baron Sees an Even Bigger Opportunity in Space-Based Data Centers

Despite Starlink's growth, Baron believes that AI data centers in space could eventually become several times more valuable. These facilities would use computers placed in orbit to run AI programs, which could potentially reduce the need for data centers on Earth that require large amounts of land and electricity.

Baron believes that demand for AI computing will become so large that building data centers in space could make financial sense. However, the technology still has some major challenges. For example, computers generate a lot of heat, and cooling equipment in space is difficult because there is no air to carry that heat away.

SpaceX would also need to launch large amounts of equipment into orbit at a reasonable cost, which makes the development of its reusable Starship rocket particularly important. This is why in April, SpaceX itself warned that its orbital AI data center plans rely on unproven technology and might never become commercially viable.

As a result, investors will undoubtedly be looking to SpaceX's third-quarter results on November 5 for more clarity on how Starship is progressing and how long until AI satellites are ready for commercial use. Analysts are also forecasting revenue of about $12.86 billion, up from $7.81 billion in the previous quarter.

Is SPCX Stock a Good Buy?

Overall, analysts have a Moderate Buy consensus rating on SPCX stock based on 28 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPCX price target of $216 per share implies 40.7% upside potential. (See SPCX Stock Forecast).