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The Zacks Analyst Blog Highlights SpaceX, AT&T and Verizon
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For Immediate Release
Chicago, IL – November 11, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Space Exploration Technologies Corp. (SPCX - Free Report) , AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Is SpaceX's $24B Texas Data Center Plan Worth Betting On?
Space Exploration Technologies Corp. is planning to develop a $24 billion gas-fired power plant and supercomputing facility at Starbase, TX, to expand its artificial intelligence (AI) infrastructure and gain greater control over critical energy resources.
The company proposes to construct, own and operate the facilities on approximately 444 acres near Brownsville, TX, in a concerted effort to integrate energy generation, advanced computing and aerospace operations. By establishing a dedicated power supply alongside its computing infrastructure, SpaceX aims to accelerate capacity deployment, enhance cost predictability and strengthen its competitive position in the rapidly expanding AI market.
Strengthening AI Computing Capabilities
The proposed supercomputing facility could significantly expand SpaceX's AI infrastructure capabilities following its acquisition of xAI earlier in 2026. The investment would provide the company with an opportunity to develop additional computing capacity for training and deploying increasingly sophisticated AI models.
AI workloads require substantial computing resources and uninterrupted electricity supplies. Expanding in-house infrastructure could help SpaceX support growing demand for AI services while reducing its dependence on third-party computing providers. The investment could also enhance its ability to serve external customers seeking high-performance computing capacity, creating opportunities for incremental revenues over the long term.
Improving Energy Security and Operational Efficiency
The construction of an accompanying natural gas-fired power plant is another key advantage of the proposed development. By generating electricity on-site, SpaceX could reduce its reliance on external utilities and avoid lengthy delays associated with connecting large data centers to Texas' electricity grid.
Access to a dedicated electricity supply could enable the company to deploy computing infrastructure more rapidly and maintain greater control over operating conditions. This is particularly important for AI data centers, where reliable power availability is critical for maximizing computing utilization and minimizing operational disruptions. Owning its power generation infrastructure could also improve long-term energy cost visibility, potentially supporting operating margins as computing demand scales.
High Capital Requirements, Regulatory Risks Remain
Despite the potential benefits, the proposed $24 billion investment represents a substantial financial commitment. Developing a large-scale supercomputing facility and dedicated power generation infrastructure could increase capital expenditure requirements and weigh on near-term free cash flow.
The project could also face regulatory challenges amid growing opposition to energy-intensive data centers, concerns about electricity costs and environmental impacts. Rising construction costs, natural gas price volatility and permitting requirements could further affect project economics and implementation timelines.
Other Potential Pitfalls
The nearly $2 trillion valuation leaves relatively little room for execution disappointments and implies significant expectations for future revenue and earnings growth. Any slowdown in Starlink subscriber additions, delays in Starship development or deterioration in launch reliability could pressure investor sentiment.
Building satellites, developing launch vehicles and expanding communications infrastructure further require continuous investments. Moreover, competition across the satellite Internet and launch markets is intensifying as governments and private companies invest aggressively in alternative platforms. Regulatory uncertainty surrounding spectrum allocation, orbital congestion and international market access represents another potential headwind.
Estimate Revision Trend
The Zacks Consensus Estimate for SpaceX’s 2026 earnings has increased 111.1% in the past 60 days to 19 cents per share. The same for 2027 earnings has improved 130.3% to $4.10. The positive estimate revision depicts bullish sentiment about the stock’s growth potential.
Price Performance
SpaceX has declined 11.7% since its IPO against the industry’s growth of 106.6% over the past month. It has lagged AT&T Inc. and Verizon Communications Inc. over this period. While Verizon has declined 4.2%, AT&T has fallen 7.5%.
End Note
SpaceX is steadily transforming from a pure-play aerospace company into a diversified AI infrastructure leader. Its aggressive investments in AI computing, expanding enterprise partnerships and plans for space-based data centers underscore management's conviction that AI will be a key driver of future growth.
Although the AI segment is likely to remain under pressure in the near term due to elevated investment levels, the company's long-term growth prospects appear increasingly tied to the rapid expansion of the global AI infrastructure market. While high operating costs and execution risks warrant attention, SpaceX appears well-positioned to benefit from the secular growth of the space economy. Those who already own the stock can hold onto it while new investors may wait for a better entry point.
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The Zacks Analyst Blog Highlights SpaceX, AT&T and Verizon
For Immediate Release
Chicago, IL – November 11, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Space Exploration Technologies Corp. (SPCX - Free Report) , AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Is SpaceX's $24B Texas Data Center Plan Worth Betting On?
Space Exploration Technologies Corp. is planning to develop a $24 billion gas-fired power plant and supercomputing facility at Starbase, TX, to expand its artificial intelligence (AI) infrastructure and gain greater control over critical energy resources.
The company proposes to construct, own and operate the facilities on approximately 444 acres near Brownsville, TX, in a concerted effort to integrate energy generation, advanced computing and aerospace operations. By establishing a dedicated power supply alongside its computing infrastructure, SpaceX aims to accelerate capacity deployment, enhance cost predictability and strengthen its competitive position in the rapidly expanding AI market.
Strengthening AI Computing Capabilities
The proposed supercomputing facility could significantly expand SpaceX's AI infrastructure capabilities following its acquisition of xAI earlier in 2026. The investment would provide the company with an opportunity to develop additional computing capacity for training and deploying increasingly sophisticated AI models.
AI workloads require substantial computing resources and uninterrupted electricity supplies. Expanding in-house infrastructure could help SpaceX support growing demand for AI services while reducing its dependence on third-party computing providers. The investment could also enhance its ability to serve external customers seeking high-performance computing capacity, creating opportunities for incremental revenues over the long term.
Improving Energy Security and Operational Efficiency
The construction of an accompanying natural gas-fired power plant is another key advantage of the proposed development. By generating electricity on-site, SpaceX could reduce its reliance on external utilities and avoid lengthy delays associated with connecting large data centers to Texas' electricity grid.
Access to a dedicated electricity supply could enable the company to deploy computing infrastructure more rapidly and maintain greater control over operating conditions. This is particularly important for AI data centers, where reliable power availability is critical for maximizing computing utilization and minimizing operational disruptions. Owning its power generation infrastructure could also improve long-term energy cost visibility, potentially supporting operating margins as computing demand scales.
High Capital Requirements, Regulatory Risks Remain
Despite the potential benefits, the proposed $24 billion investment represents a substantial financial commitment. Developing a large-scale supercomputing facility and dedicated power generation infrastructure could increase capital expenditure requirements and weigh on near-term free cash flow.
The project could also face regulatory challenges amid growing opposition to energy-intensive data centers, concerns about electricity costs and environmental impacts. Rising construction costs, natural gas price volatility and permitting requirements could further affect project economics and implementation timelines.
Other Potential Pitfalls
The nearly $2 trillion valuation leaves relatively little room for execution disappointments and implies significant expectations for future revenue and earnings growth. Any slowdown in Starlink subscriber additions, delays in Starship development or deterioration in launch reliability could pressure investor sentiment.
Building satellites, developing launch vehicles and expanding communications infrastructure further require continuous investments. Moreover, competition across the satellite Internet and launch markets is intensifying as governments and private companies invest aggressively in alternative platforms. Regulatory uncertainty surrounding spectrum allocation, orbital congestion and international market access represents another potential headwind.
Estimate Revision Trend
The Zacks Consensus Estimate for SpaceX’s 2026 earnings has increased 111.1% in the past 60 days to 19 cents per share. The same for 2027 earnings has improved 130.3% to $4.10. The positive estimate revision depicts bullish sentiment about the stock’s growth potential.
Price Performance
SpaceX has declined 11.7% since its IPO against the industry’s growth of 106.6% over the past month. It has lagged AT&T Inc. and Verizon Communications Inc. over this period. While Verizon has declined 4.2%, AT&T has fallen 7.5%.
End Note
SpaceX is steadily transforming from a pure-play aerospace company into a diversified AI infrastructure leader. Its aggressive investments in AI computing, expanding enterprise partnerships and plans for space-based data centers underscore management's conviction that AI will be a key driver of future growth.
Although the AI segment is likely to remain under pressure in the near term due to elevated investment levels, the company's long-term growth prospects appear increasingly tied to the rapid expansion of the global AI infrastructure market. While high operating costs and execution risks warrant attention, SpaceX appears well-positioned to benefit from the secular growth of the space economy. Those who already own the stock can hold onto it while new investors may wait for a better entry point.
SpaceX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>