Morgan Stanley Backs SpaceX Stock on Cursor, Grok AI Upside

HAWTHORNE, Calif. — Wall Street's most closely watched newcomer has a powerful new voice in its corner. Morgan Stanley told clients this week that SpaceX ($SPCX) can climb sharply from current levels as investors wake up to the value tucked inside its artificial-intelligence business, anchoring the call on the coding platform Cursor and the Grok models now housed under the company's roof.

A $300 Base Case, With Room Above

Analyst Adam Jonas reiterated a bullish stance on SpaceX — NASDAQ: SPCX — with a $300 price target, roughly 125% above where the stock changed hands this week, and pointed to an even more aggressive $600 scenario if the AI narrative keeps unfolding. "As investors see more breadcrumbs on the Cursor/Grok story, we see potential for the implied valuation discount on SpaceX's AI business to lift, driving potentially substantial appreciation of the stock," Jonas wrote.

That view lands as the stock recovers from the heavy capital spending that spooked traders after the company's first earnings report. SpaceX spent aggressively to build out AI compute in the second quarter, but management has argued repeatedly that the outlays will pay back quickly, a case Argus echoed when it upgraded the stock to Buy after the earnings call.

Cursor's Fortune 500 Footprint

The centerpiece of the thesis is Cursor, the AI coding platform SpaceX is folding into its software stack. Jonas noted the tool already sits inside more than 60% of the Fortune 500 and some 50,000 enterprises. Morgan Stanley projects Cursor's annual recurring revenue reaching $8 billion by year-end and roughly $33 billion by 2030 — a figure that would rival the standalone scale of Google Cloud today, all riding on infrastructure SpaceX already operates. Details of the note were reported by Invezz.

Grok adds a second high-margin layer. The chatbot competes with ChatGPT and Claude and monetizes through subscriptions and usage, while X supplies advertising and data revenue on top. Together, those application businesses turn the same compute clusters that train SpaceX's own models into a hyperscale-style rental operation for outside AI leaders including Google and Anthropic.

Why the Discount Could Close

Morgan Stanley is far from alone in its optimism. Guggenheim opened coverage with a buy rating, Bernstein sees the stock reaching $248 and Needham $250. Underpinning the bull case is Starlink, whose cash flow funds the AI build-out without forcing the company to dilute shareholders. The connectivity unit passed 12 million subscribers and generated $4.2 billion in the second quarter, a growth engine that has helped keep the company on its ambitious path toward $1 trillion in annual revenue.

For Musk, the message from Wall Street is increasingly consistent: the launch and satellite empire investors first bought is now wrapped around one of the fastest-scaling software franchises in technology. If the market prices that layer anywhere near what it pays peers, analysts argue, SpaceX still has plenty of runway ahead. $TSLA investors are watching closely too, given the persistent talk of an eventual Tesla-SpaceX tie-up.