Wild card for SpaceX is the AI business, says NYU finance professor Damodaran

June 4, 2026 - 20:16

Aswath Damodaran, a well-known finance professor at New York University's Stern School of Business, recently appeared on "Closing Bell" to weigh in on the potential valuation of a SpaceX initial public offering. While the company is widely celebrated for its achievements in space travel and satellite internet through Starlink, Damodaran pointed to a less obvious factor as the real wild card: artificial intelligence.

According to Damodaran, the core value of SpaceX has traditionally been tied to its launch services and its growing Starlink network, which aims to provide global broadband coverage. However, he argued that the company's involvement in AI could dramatically shift its financial outlook. He suggested that if SpaceX successfully integrates AI into its operations or leverages it for new revenue streams, the valuation could soar far beyond what current models predict. Conversely, if the AI business fails to materialize or faces heavy competition, it could weigh on the stock.

The professor's comments come amid ongoing speculation about when SpaceX might go public. The company has remained private for years, with its valuation already exceeding $150 billion in secondary markets. Damodaran's analysis highlights the difficulty of pricing a firm that operates at the intersection of two high-risk, high-reward industries: aerospace and artificial intelligence. For investors, the takeaway is clear: while SpaceX's rockets are impressive, its AI potential might be the real engine for future growth.