SpaceX faces "an unprecedented set of AI and space" opportunities: TD Cowen

SpaceX's Starship reached orbit for the first time on its 14th test flight, deploying 26 Starlink V3 satellites. Despite an engine issue, the mission was cut short with a controlled splashdown. SpaceX aims for routine Starship flights later this year. Analysts suggest smaller launch companies like Rocket Lab (RKLB) and Firefly (FLY) may benefit due to Starship's limitations in serving smaller customers with specific orbit needs. SpaceX stock (SPCX) rose 1.97% following the launch.

SpaceX stock rose 2% to $149.02 after its Starship vehicle reached orbit and deployed satellites for the first time, despite an engine fault. Rocket Lab and AST SpaceMobile stocks fell 3%, while the Procure Space ETF dropped 1%. Morgan Stanley, UBS, and TD Cowen maintained positive ratings on SpaceX, with price targets ranging from $200 to $300.

SpaceX's Starship successfully reached orbit on its first attempt, deploying 26 Starlink V3 satellites. CEO Elon Musk confirmed the mission's success. SpaceX shares (SPCX) rose 0.97% to $146.88, but remain down 8.74% from their June IPO price. Starlink's Connectivity revenue grew 66% YoY to $4.29 billion, with over 12 million subscribers. The flight advances SpaceX's plans for larger, more capable satellites and reusability.

SpaceX (SPCX) shares rose 2.39% to $148.96 on Tuesday after TD Cowen initiated coverage with a Buy rating and $200 price target. Analyst John Blackledge expects AI processing power leasing to drive revenue, with clients like Google and Anthropic. Starship's successful orbital flight also boosted sentiment. Anthropic's compute deal with SpaceX is larger than previously disclosed, potentially reaching $84.5 billion by 2029.

TD Cowen initiated coverage of SpaceX (NASDAQ:SPCX) with a Buy rating and a $200 price target, citing AI computing capacity leasing as its fastest-growing revenue stream. Analyst John Blackledge expects this segment to comprise the majority of SPCX revenue by 1Q27, with capacity tripling from 2.1 gigawatts in 2026 to 6 gigawatts by 2027. Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Anthropic are among the customers. Starship's successful orbit also presents growth opportunities.

TD Cowen initiated coverage of SpaceX (SPCX) with a Buy rating and a $200 price target, citing AI compute leasing as a major growth driver. The firm expects this segment to generate $14B in 2026, rising to $133B by 2028, and become the largest revenue source by Q1 2027. SpaceX's revenue is projected to grow at a 62% CAGR from 2026 to 2031, with EBITDA reaching $297B by 2031. Starlink and launch capabilities are also expected to contribute significantly to growth.