Wedbush: SpaceX's AI Satellites Could Turn It Into a Hyperscale Powerhouse

SpaceX, Elon Musk ambitious space company, is rapidly transforming into a major artificial intelligence (AI) powerhouse, not just a rocket firm. That's the bold take from Wedbush analyst Dan Ives, who just gave SpaceX an 'Outperform' rating and a $190 price target, seeing it as a future 'hyperscaler' in the AI world. This isn't about traditional rockets anymore; it's about putting data centers in space. Ives's bullish view comes as SpaceX pushes hard into AI, planning to launch up to a million 'AI compute satellites,' officially named Starmind, no earlier than 2028. These satellites, built on the existing Starlink network, are designed to handle demanding AI training and inference tasks directly from orbit. SpaceX recent acquisition of xAI in February 2026, coupled with its massive Starlink revenue of over $11 billion in 2025 that's bankrolling this AI pivot, shows a clear strategic shift towards becoming a leader in space-based computing infrastructure. This move signals a new frontier for AI and cloud computing, with SpaceX aiming to tackle the energy and space challenges faced by ground-based data centers. Investors will be closely watching for more details on the Starmind constellation and how its deployment via Starship will reshape the competitive landscape. While the stock currently appears expensive, according to Ives, successful execution of this orbital data center vision could make SpaceX one of the most significant AI investments of the next few years.