SpaceX (SPCX) artificial intelligence revenues and use cases are accelerating faster than expected, with new applications like agentic coding and Grok Bot driving a 3x increase in direct AI revenue and more indirectly, Oppenheimer said in a Wednesday note.

SpaceX is the only vertically integrated AI company, enabling it to build and manufacture around bottlenecks at a time when pricing for AI compute is rising. Alphabet's Google (GOOG, GOOGL) is paying the company $11 per GPU-hour, roughly double the average rates observed a year ago, according to the note.

Oppenheimer expects a one-year payback for new Nvidia (NVDA) Rubin chips, as AI productivity and usage continue to exceed expectations while infrastructure remains a bottleneck.

The brokerage raised its long-term revenue estimate by about 10% on stronger AI compute pricing, supported by rapid improvements to SpaceX's AI model and platform, as well as channel checks and third-party large language model benchmarks.

Oppenheimer raised its price target to $280 from $250, with an outperform rating.

Shares of SpaceX were down 1.3% in Wednesday trading.

Price: 140.37, Change: -1.86, Percent Change: -1.31