Wedbush initiated coverage on SpaceX with an ‘Outperform’ rating, citing long-term AI-driven upside. <\/p>\n
Ives expects strength across software names including Microsoft, Oracle, Alphabet and Palantir as AI adoption broadens. <\/p>\n
The analyst said Nvidia remains the dominant AI chip supplier and doesn’t expect custom chips to become a meaningful competitive threat for several years. <\/p>\n
Wedbush’s Global Head of Tech Research, Dan Ives, said the firm sees SpaceX (SPCX) as a potential artificial intelligence-driven infrastructure play with the ability to evolve into a major hyperscaler. The firm recently initiated coverage of the Elon Musk company with an ‘Outperform’ rating and a $190 price target, implying around 16% upside from the SPCX stock’s last close. <\/p>\n
The SPCX stock ended Tuesday’s session with a gain of 4.06% and then added 0.85% in after-hours trading, at the time of writing. <\/p>\n
See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox<\/a> <\/p>\n Why Wedbush Sees SPCX As An AI Play <\/p>\n SpaceX (SPCX) is “much more of an AI play” than a traditional space company and is well positioned to become a major hyperscaler, Ives said, while speaking on CNBC’s Fast Money. Ives added that Wedbush views SpaceX using a “sum of the parts” valuation, with AI compute forming a major part of its long-term investment thesis. <\/p>\n He acknowledged that the company appears expensive based on current revenue but added that, if it executes over the next two to three years, “this becomes one of the best AI plays in the market.” <\/p>\n “That’s why we are bullish here. I think you got to see around the corner, rather than just looking at valuation over the next six to 12 months,” Ives said. <\/p>\n Ives Remains Bullish On AI Into The Second Half <\/p>\n Looking ahead at the second half of the year, Ives said Wedbush’s supply chain checks in Taiwan and Korea point to accelerating demand, which he expects to act as a catalyst for hyperscalers during the earnings season. <\/p>\n He said the momentum should eventually spread to software, highlighting names such as Palantir Technologies (PLTR), Microsoft (MSFT), Oracle (ORCL) and Alphabet (GOOGL) as areas of focus. Ives also expects semiconductor stocks to continue moving higher, saying demand continues to outstrip supply by a wide margin. <\/p>\n “I still believe chip names continue to go higher, just because the demand and supply is 12 to 1,” he said, adding that memory remains “foundational to everything we’re seeing,” and that Wedbush remains “very bullish” on the second half. <\/p>\n Ives Cautious On Adobe, Bullish on Nvidia <\/p>\n While constructive on much of the software sector, Ives said he remains cautious on Adobe (ADBE), stating that the company needs major strategic changes, such as acquisitions or divestitures, before sentiment improves. <\/p>\n On Nvidia (NVDA), Ives stayed very bullish, saying the market is yet to fully appreciate the company’s long-term opportunity in physical AI. He also downplayed the competitive threat from custom AI chips in the near term, saying he does not expect them to meaningfully challenge Nvidia’s GPUs for another three to four years. <\/p>\n SPCX Stock: What Stocktwits Retail Sentiment Says <\/p>\n On Stocktwits, retail sentiment for SPCX was ‘bearish,’ unchanged in the last 24 hours. Over the past 30 days, message volume around the stock has surged 4,957%. <\/p>\n The SPCX stock is up nearly 14% since it listed. <\/p>\n Also See: P Stock Jumps 10% On Tuesday\u2014 Jana Partners Builds New Activist Stake In Everpure, Says Report<\/a> <\/p>\n For updates and corrections, email newsroom[at]stocktwits[dot]com. <\/p>\n Aveek Bhowmik has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy<\/a>. This article was originally published on StockTwits<\/a>. <\/p>\n Related: <\/p>\n","protected":false},"excerpt":{"rendered":"Wedbush initiated coverage on SpaceX with an ‘Outperform’ rating, citing long-term AI-driven upside. 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