SpaceX AI Expansion Could Nearly Double Stock Price

SpaceX's vertically integrated AI platform is generating significant revenue for Nvidia, according to Oppenheimer. The firm estimates that SpaceX contributes nearly $5 billion, or 5%, of Nvidia's quarterly revenue.

The company expects to exceed 2 GW of compute by year-end 2026 and approach 10 GW by year-end 2027. This massive expansion could generate significant revenue for Nvidia and make it easier for SpaceX to capture a larger share of the AI market.

Oppenheimer raised its price target for SpaceX (SPCX) to $280 from $250, implying a 99% upside from current levels, and maintained its 'Outperform' rating. The firm cited the company's ability to build infrastructure rapidly and retain valuable data as key differentiators.