An analyst said SpaceX's artificial intelligence division is growing rapidly, giving the company a huge advantage at a time when critical resources are still scarce. Oppenheimer analysts led by Timothy Horan said in a customer report on Wednesday that SpaceX is expected to be the winner in the short-term computing power shortage situation. According to Horan, the company “has the ability to introduce infrastructure faster than any other party, and is using this infrastructure and its data to improve its model faster than any other party.” Horan gave SpaceX stock a buy rating and raised the target share price from $250 to $280. The new price target means SpaceX has room to rise by about 100% compared to the current level. Horan said, “In an environment where computing power is still limited, we expect SpaceX to get half of every dollar of revenue generated by partners like Anthropic using SpaceX's computing power.” In addition to selling computing power, SpaceX is also using its resources to train its own cutting-edge model GROK. SpaceX also recently completed the acquisition of AI startup Cursor, which Horan said was “transformative” and would help SpaceX develop its models and generate additional revenue.

An analyst said SpaceX's artificial intelligence division is growing rapidly, giving the company a huge advantage at a time when critical resources are still scarce. Oppenheimer analysts, led by Timothy Horan, said in a customer report on Wednesday that SpaceX is expected to be the winner in the short-term computing power shortage situation. According to Horan, the company “has the ability to introduce infrastructure faster than any other party, and is using this infrastructure and its data to improve its model faster than any other party.” Horan gave SpaceX stock a buy rating and raised the target share price from $250 to $280. The new price target means SpaceX has room to rise by about 100% compared to the current level. Horan said, “In an environment where computing power is still limited, we expect SpaceX to get half of every dollar of revenue generated by partners like Anthropic using SpaceX's computing power.” In addition to selling computing power, SpaceX is also using its resources to train its own cutting-edge model, GroK. SpaceX also recently completed the acquisition of AI startup Cursor, which Horan said was “transformative” and would help SpaceX develop its models and generate additional revenue.