William Blair Affirms Outperform on SpaceX

William Blair analyst Louis DiPalma reiterated an Outperform rating on SpaceX (NASDAQ: SPCX).

“SpaceX reported third-quarter financials with major upside relative to consensus expectations.

The main headline from the earnings call will likely center on SpaceX’s plans to end 2027 with potentially double the prior planned power capacity.

In our callback with management, the company suggested that it would use “new form factors” to reach the upper-bound 20 gigawatts versus the lower-bound 10 gigawatts.

The company guided for ARR to increase from $100 billion at the end of 2026 to a range of $500 billion to $1 trillion at the end of 2027.

Thus far, unflagging AI demand has resulted in financials surprising to the upside. Mass manufacturing is SpaceX’s specialty, so the AI feeding frenzy is right in the company’s wheelhouse.

SpaceX is taking its star rocket scientists and applying their talents to the data center industry to scale up capacity as fast as possible to serve demand.

It is also using these rocket scientists to re-invent telecom networks. Thus far, it has translated into massive growth.

Macro indicators corroborate SpaceX’s belief that it could sell compute capacity several times over.

The main theme is that SpaceX is the premier global industrial manufacturer, and it is at the epicenter of AI, chips, telecom, energy, and robotics.

We expect continued upside to shares as more AI capacity deals are announced.”

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