SpaceX’s AI infrastructure plans are not fully priced in, analysts say
Space Exploration Technologies is likely to rally as its artificial intelligence infrastructure plans take shape, according to a pair of analysts. Bernstein, which has an outperforming rating on the aerospace stock, raised its price target to $268 from $248. The new target is about 82% above Friday’s close. Deutsche Bank also has a buy rating on the stock and raised its price target to $250 from $230, implying nearly 70% upside. “We raise our SpaceX outlook primarily on terrestrial AI build plans,” Bernstein analyst Douglas Harned said Monday in a note to clients. “We believe the case for a multi-trillion dollar valuation rests on success of orbital data centers. But, the company’s outlook for terrestrial AI is a material add to the overall revenue path.” Deutsche’s Edison Yu added that the value SpaceX’s processing power could add to shares may be “underappreciated.” “Our sense is [that] estimates for the next few quarters may still be too low and looking out further, SpaceX’s ability to leverage a compute advantage into better inference/intelligence continues to be underappreciated,” Yu wrote. SPCX 3M mountain SPCX 3-month chart SpaceX is aiming to generate roughly 10 gigawatts of compute incremental computing capacity online by the end of next year, per Yu. Its compute could be priced at roughly $35 billion per gigawatt versus the industry standard of $50 billion per gigawatt, the analyst said. That would give SpaceX a cost advantage over peers, which could drive value to its shares, according to Deutsche Bank. Bernstein’s and Deutsche Bank’s calls fall in line with consensus on Wall Street. Of the 43 analysts covering SpaceX, 33 have a buy or strong buy rating on the stock, LSEG data shows. Shares are roughly flat over the past month.
