Space Exploration Technologies' (SPCX) inaugural quarterly results showed broad outperformance, led by AI cloud service deals, UBS Securities said Wednesday in a report.
SpaceX's combination of launch, connectivity and compute businesses is increasingly differentiated and positioned to create long-term value, UBS said.
The company is making rapid progress across its Starship, Starlink and its AI initiatives, and management believes it has addressed Starship's heat-shield issue and plans a ship-catch attempt on the next test flight, the report said.
UBS expects an inflection in Starlink revenue growth once 1,000 next-generation V3 satellites are deployed, which it estimates will occur sometime next year. AI compute capacity may reach 5 to 10 gigawatts by the end of 2027, above its prior estimate of 4 gigawatts.
UBS maintained its buy rating on SpaceX stock with a $210 price target.
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