Morgan Stanley: Space is the "ultimate backyard" for computing power, maintains "Overweight" rating on SpaceX (SPCX.US)
Morgan Stanley maintains an "Overweight" rating on SpaceX with a target price of $300, stating that space is the ultimate scenario for AI computing power and that the renaming to SpaceXSI reflects ambitions for superintelligence.
According to news from Zhihu Finance APP, Morgan Stanley released a research report maintaining its “Overweight” rating on SpaceX (SPCX.US) with a target price of $300, which is close to 90% upside from the closing price of $158.96 on October 2. Analyst Adam Jonas and his team presented an even broader view: space is becoming the ultimate arena for transforming energy into intelligence in the AI era.
Morgan Stanley pointed out that space is the ideal place to convert energy into intelligence at scale—it’s like a “huge, cold, and sun-drenched backyard.” As ground-based data centers are running into power constraints and site selection controversies, this logic is gaining traction.
The report also highlighted a new phenomenon: “Space Washing.” As the anti-data center movement gains momentum, more and more companies are beginning to extol the virtues of space, shifting the computational power narrative to orbit. Morgan Stanley has noticed that several tech giants are now making clear moves in the space AI infrastructure realm; SpaceX is not the only major player making heavy bets in this area.
Renamed to SpaceXSI: The “Super Intelligence” Ambition Behind a Letter
Musk has announced the renaming of his AI division from SpaceXAI to SpaceXSI—shifting from “Artificial Intelligence (AI)” to “Super Intelligence (SI).” Morgan Stanley reminds investors to reflect on the deeper significance: this move echoes Trump’s executive order—which changed the term “Artificial Intelligence” to “Super Intelligence” in non-statutory documents. Previously, Musk made a high-profile appearance during his recent state visit to China and was just appointed by Defense Secretary Hegseth as co-head of “Project Meridian.” Sharing this title with him are Anduril CEO Palmer Luckey and former House Speaker Newt Gingrich.
Morgan Stanley makes it clear that what seem like trivial and unrelated events actually form a coherent thread: the forces represented by the “Muskonomy” are now seen as key pieces in America’s national strategy to rebuild domestic manufacturing and defense capabilities.
Valuation Breakdown: How the $300 Target Was Calculated
Morgan Stanley used the Sum-of-the-Parts (SOTP) method, splitting SpaceX into four segments: Space business $8, Connectivity business (Starlink) $118, X and Grok $8, and Enterprise AI $165. Of these, Enterprise AI alone accounts for more than half the value, though it’s been discounted by 50% due to execution risks.
From “the last mile of AI” to “the Super Intelligence renaming game,” what Morgan Stanley’s report really aims to say is this: as the physical limits of computational power emerge on earth, space becomes not just a narrative of aspiration, but the next main battlefield for AI infrastructure—and SpaceX stands at the starting line of this track.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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