TV Host Jim Cramer has praised Elon Musk‘s commercial spaceflight company Space Exploration Technologies Corp. (NASDAQ:SPCX), saying that the enterprise could benefit investors even before Tesla Inc. (NASDAQ:TSLA) did.

SpaceX Is a ‘Real Company’ With a ‘Real Business’

On Wednesday, Cramer hailed SpaceX on the “Mad Money” show on CNBC, saying that Musk had made some “very smart moves” by renting out excess AI compute with NVIDIA Corp (NASDAQ:NVDA) chips that Cramer said Musk bought at “extortionate prices,” while also pointing to the compute deals with Anthropic and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG).

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“I’ve been adamant this [SpaceX] is a real company with real numbers and a real business, many businesses even,” Cramer said, adding that he had defended the company against criticism that it was overvalued.

Goldman Sachs Price Target

Cramer then pointed to Goldman Sachs Group Inc. (NYSE:GS) raising its price target for SpaceX to $230, which “ratified” the previous $220 price target. “When you’re dealing with real speculative games, you almost never see price target bumps until after the hot money’s over on the price target. By then, it’s too late anyway,” Cramer said.

However, Cramer then said that he understood the investment bank’s price target bump, adding that SpaceX was making “so much money renting out compute” that it was planning to borrow $40 billion to buy more NVIDIA chips.

“SpaceX could end up being NVIDIA’s largest client at this pace. That’s fantastic news for both sides,” he said. The TV Host then said that it was “becoming more and more likely that SpaceX could come to fruition a lot earlier than Tesla ever did.”

Morgan Stanley Bullish on SpaceX

Notably, Morgan Stanley (NYSE:MS) analyst Adam Jonas said that the company presented a “unique” investment opportunity with its wide array of “interlinked” businesses and that it was “unusually cheap” when investors factored in the opportunities in chipmaking and power.

Jonas reiterated an “overweight” rating for SpaceX and issued a price target of $300 for SpaceX shares, illustrating bullish sentiment on the stock.

Price Action: SPCX shares were up 0.27% to $168.05 during overnight trading on Wednesday.

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