Oppenheimer: Physics AI is expected to become the next growth engine. SpaceX (SPCX.US) target price is $250.

Oppenheimer has given SpaceX a target price of $250, indicating significant upside potential compared to its current stock price of around $150. The company recently completed its initial public offering, and Oppenheimer believes that the core logic behind SpaceX's future valuation increase comes mainly from its long-term potential in artificial intelligence (AI), communication networks, and physical intelligence. Oppenheimer technology analyst Timothy Horan said in an interview that SpaceX's valuation will largely depend on the company's opportunities in the AI field in the future, especially the potential for its Starlink satellite chain business to expand into the mobile communication market. Horan pointed out that Starlink's mobile service will be one of SpaceX's most important growth drivers in the near future. The company plans to directly challenge traditional US telecom operators such as Verizon, AT&T, and T-Mobile, entering the large-scale communication market. "This is the largest market that SpaceX should pursue in the short term." Horan said. He noted that the global communication market is worth about $2 trillion, and SpaceX is trying to reshape this market through satellite communication and a new network architecture. In order to compete with traditional operators in large cities like New York, Horan said SpaceX may need to build ground networks and improve network coverage and connection stability in urban areas through a relay model similar to the one used by SiriusXM satellite radio. Horan expressed confidence in this strategy. He believes that wireless communication technology has not fundamentally changed in the past 30 years, so the industry is ready to be reshaped by new technologies. He stated that as satellite networks, ground relay devices, and low-latency communication capabilities continue to mature, SpaceX is likely to open up new growth opportunities in the field of mobile communication. In addition to the communication business, Horan also emphasized the long-term opportunities brought by physical AI. He believes that in the next four to five years, physical AI will be one of the fastest-growing directions in the AI field. Physical AI refers to AI capabilities transitioning from the digital world to the real world, empowering automated driving vehicles, trucks, Siasun Robot & Automation, industrial equipment, and various IoT terminals to perceive, judge, and execute tasks in real environments. Horan said that with the continuous improvement of communication networks and computing capabilities, more IoT and machine-to-machine communication applications will become possible. In his view, autonomous driving vehicles, autonomous trucks, Siasun Robot & Automation, and industrial automation equipment will rely on stronger network connections and computing infrastructure, which are the areas where SpaceX may play an important role in the future. "This will be just the beginning of the revolution we will see in the field of physical AI." Regarding the market's focus on whether SpaceX and Tesla, Inc. may merge in the future, Horan said that from an investment perspective, he would recommend buying Tesla, Inc. because the company has unique technological advantages. However, he believes that a true merger between SpaceX and Tesla, Inc. may still take several years. Horan said that only when SpaceX has more of its own AI infrastructure and AI models, a merger between the two sides would make more strategic sense. Oppenheimer's $250 target price reflects Wall Street's repositioning of SpaceX from a simple space launch and satellite internet company to a technology platform company that spans communication infrastructure, AI computing networks, and physical intelligence ecology. As Starlink continues to expand its coverage and further enters into scenarios such as mobile communication, IoT, and autonomous driving, SpaceX's future growth potential is receiving more and more attention from the capital market.