Space Exploration Technologies Corp (NASDAQ:SPCX) shares are trading higher Tuesday after TD Cowen initiated coverage with a Buy rating, adding to momentum from Monday’s successful Starship orbital flight.
- SpaceX stock is gaining positive traction. Why are SPCX shares climbing?
TD Cowen Initiates SPCX With a Buy Rating and $200 Target
TD Cowen analyst John Blackledge set a Buy rating and $200 price target on SpaceX. His thesis centers on renting out ground-based AI processing power to outside companies, a business he sees overtaking everything else SpaceX does financially within the next several quarters.
Clients have already lined up for that capacity, including Google and Anthropic, and Blackledge expects total leasing capacity to roughly triple, moving from about 2.1 gigawatts now toward 6 gigawatts by the close of 2027 as the buildout accelerates.
By his math, SpaceX has already locked in four customers for compute leasing this year, with quarterly revenue from that business alone approaching $8.1 billion by the final quarter and annualized run-rate revenue closing out the year near $41 billion.
Tuesday’s positive momentum also comes after Starship successfully reached orbit for the first time on Monday, overcoming a scare when one engine failed partway through ascent, a hiccup that momentarily put the whole mission in jeopardy before the vehicle pushed through and released all 26 Starlink V3 satellites it was carrying.
Anthropic’s Compute Deal Is Far Larger Than Previously Disclosed
Adding to the bullish backdrop, Reuters uncovered details from a confidential IPO filing showing Anthropic has committed to paying SpaceX as much as $84.5 billion for access to its Nvidia-powered computing infrastructure through 2029, The Information reported.
That figure dwarfs the roughly $45 billion arrangement SpaceX had previously disclosed publicly, though the newer agreements reportedly allow either side to exit with 90 days’ notice. Anthropic has separately indicated it intends to spend upwards of $518 billion on AI infrastructure over the next decade, spread across multiple partners including SpaceX, Google, Amazon and Microsoft.
SPCX Shares Are Climbing
SPCX Price Action: SpaceX shares were up 2.39% at $148.96 at the time of publication on Tuesday, according to Benzinga Pro.
Image: Samuel Boivin/Shutterstock
Login to comment