Wedbush Sees SpaceX as a Leading AI Infrastructure Bet, Not Just a Space Company

Investment firm Wedbush has initiated coverage of SpaceX (SPCX) with an Outperform rating and a price target of $190, framing the company not as a conventional aerospace business but as a major artificial intelligence infrastructure play. The firm's Global Head of Tech Research, Dan Ives, laid out the investment thesis during an appearance on CNBC's Fast Money, arguing that SpaceX's AI compute operations could eventually place it among the market's top long-term hyperscaler opportunities.

The $190 price target represents approximately 11% upside from SPCX's Tuesday closing price of $170.86. Wedbush arrived at its valuation using a sum-of-the-parts model, with AI compute forming a significant component of the long-term outlook. "It's much more of an AI play, and that's our whole view from a data perspective," Ives stated on the network.

Ives acknowledged that by conventional revenue metrics, the stock appears richly valued at current levels. However, he emphasized that strong execution over the next two to three years could transform SpaceX into one of the most compelling AI investment opportunities in the broader market.

SpaceX is also moving toward potential inclusion in the Nasdaq 100. Shares recently tested a key support level following the company's record-breaking IPO, and a subsequent bond offering triggered some analyst warnings about speculative pricing.

Despite the AI narrative, Starlink continues to anchor the bull case. The satellite broadband division generated approximately $11.4 billion in revenue last year, accounting for roughly 61% of SpaceX's total revenue, while also delivering a solid operating profit — even as the company reported a net loss overall. Wedbush's $190 target relies heavily on Starlink's recurring subscriber revenue and its potential for margin expansion, with the launch segment and the emerging AI unit treated as supplementary upside drivers.

The launch business serves more as a strategic moat than a direct profit engine. Falcon 9 currently dominates the global commercial launch market, and Starship is designed to reduce per-launch costs further by deploying more satellites per mission. That said, the segment generates considerably less revenue than Starlink, and the majority of its launches are used to deploy SpaceX's own satellite constellation rather than fulfill external contracts.

This revenue structure explains why market participants are keeping a close eye on Starlink's subscriber growth trajectory and margin performance. If the broadband unit continues scaling at its current pace, it could independently support a substantial portion of SpaceX's overall valuation — with AI infrastructure contributing additional upside rather than carrying the entire investment thesis on its own.