SpaceX Set for Rapid Revenue Growth in AI Compute Leasing

TD Cowen has initiated coverage of SpaceX (SPCX) with a Buy rating and a $200 price target, predicting that leasing terrestrial AI computing capacity will become the company's fastest-growing revenue stream. This implies about 37% upside from Monday's closing price of $145.47.

The firm expects AI compute leasing, which already has customers like Alphabet's (GOOGL) Google and Anthropic, to make up the majority of SpaceX's revenue by the first quarter of 2027, driven by a ramp in terrestrial gigawatt capacity. TD Cowen built a model covering 2024 through 2031 and a utilization model for the leasing business.

Other analysts are also bullish on SpaceX after recent developments, including Clear Street and Mizuho, which both have Buy ratings with $217 and $200 targets respectively. This joins the trend of positive views following Starship's Flight 14, where it successfully inserted satellites into orbit.