Wedbush initiated coverage of SpaceX with an 'Outperform' rating, positioning it as an AI-driven infrastructure play rather than a traditional space company. Analyst Dan Ives believes that if the company executes over the next two to three years, it could become one of the market's best AI plays, despite appearing expensive based on current revenue. The firm also remains bullish on software and semiconductor stocks heading into the second half of the year, citing accelerating demand.
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Wedbush Securities started coverage of SpaceX with an 'Outperform' rating and a $190 price target, arguing the company is positioned to become a major AI-driven hyperscaler (large cloud infrastructure provider) rather than primarily a space company.
Why it matters
Dan Ives, Wedbush's Global Head of Tech Research, expects SpaceX's AI compute capability to be a core part of its long-term value—meaning investors should evaluate it on multi-year execution rather than current revenue alone. This signals institutional confidence that SpaceX could emerge as a significant player in the booming AI infrastructure market alongside traditional hyperscalers.
What to watch
Wedbush also expects software stocks including Microsoft, Oracle, Alphabet, and Palantir to benefit as AI adoption spreads in the second half of the year, while Nvidia remains the dominant AI chip supplier with custom chips unlikely to pose a meaningful competitive threat for another three to four years.
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