SpaceX's Vertical Integration Gives Edge Amid Compute Shortage -- Market Talk

1248 ET - SpaceX's vertical integration gives it an advantage in deploying and supplying computing power, Oppenheimer analysts write in a note, lifting their price target to $280 from $250. "We think SPCX will be a winner of the near-term compute shortage, as it has the ability to bring on infrastructure faster than anyone else, and is using this infrastructure and its data to improve its own models faster than anyone else," they write. Not only can SpaceX use this compute itself, but it rents out infrastructure to other firms, gaining 50 cents for each dollar of revenue its tenants receive based on the analysts' analysis. "As demand for SPCX models accelerates, SPCX captures the leasing and frontier lab revenues as a vertically integrated owner," the analysts write. "No other company can do this, in our opinion. (elias.schisgall@wsj.com)

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September 02, 2026 12:48 ET (16:48 GMT)