Wedbush initiates SpaceX coverage with 'Outperform', eyes AI hyperscaler play

What happened

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.