SpaceX (SPCX) shares jumped over 2% on Tuesday after investment bank TD Cowen initiated coverage of the rocket and satellite provider with a bullish outlook and a ‘Buy’ rating. Analysts are betting that leasing AI data center compute capacity to artificial intelligence companies will rapidly evolve into SpaceX’s primary revenue driver.

The company’s stock rose to around $149.24 in late trading, representing a gain of 2.59%. TD Cowen’s price target of $200 per share implies a potential upside of approximately 35% from current market levels.

This valuation offers investors a clear benchmark as SpaceX pivots from a purely aerospace operation to a major AI infrastructure provider. TD Cowen forecasts that compute leasing will generate $14.4B in revenue this year (about 35% of the total), before becoming the company’s main business by Q1 2027 and reaching $66B (about 58% of sales).

SpaceX is expanding its footprint by securing high-profile AI clients, including Anthropic, Google, and Reflection AI, along with a fourth customer agreeing to a $1.1B monthly contract. The investment bank projects SpaceX’s terrestrial data center capacity to scale from 2.1 GW at the end of this year to 6 GW in 2027, ultimately reaching 22 GW by 2031.