Morgan Stanley Backs SpaceX’s AI Potential — Expects Firm Could Help Deliver Greater Computing Power At Lower Cost

According to a CNBC report on Wednesday, Morgan Stanley said SpaceX could improve what it calls ‘intelligence-per-watt-per-dollar-per-second.’

• Morgan Stanley reiterated an ‘Overweight’ rating on the stock.
• According to a Reuters report, Vietnamese carrier Vietjet is expected to announce an agreement to install Starlink internet on 120 aircraft.
• Baron Capital CEO Ron Baron stated that SpaceX could eventually be worth $14 trillion to $15 trillion.

SpaceX (SPCX) drew investors' attention on Wednesday after Morgan Stanley reportedly reiterated its ‘Overweight’ rating, highlighting the company’s potential to make artificial intelligence computing more efficient as it expands beyond rockets and satellite connectivity.

According to a CNBC report on Wednesday, Morgan Stanley said SpaceX could improve what it calls “intelligence-per-watt-per-dollar-per-second.” The firm believes SpaceX could help deliver greater AI computing power while requiring less energy, money and time.

The comments build on Morgan Stanley’s earlier view of SpaceX. The firm initiated coverage in July with an ‘Overweight’ rating and a $300 price target, highlighting the combination of SpaceX’s launch capabilities, Starlink network and growing AI opportunity

In August, Morgan Stanley said it saw significant potential from Cursor, the AI coding platform recently acquired by SpaceX. The firm estimates Cursor could contribute $2.5 billion to SpaceX’s revenue in 2026 and $13 billion in 2027, representing about 10% and 19% of its projected AI revenue, respectively.

SPCX stock was up 6% at the time of writing.

Starship’s Biggest Test Approaches

On Tuesday, SpaceX said that it has earmarked September 22 for Starship’s 14th test flight. Starship is SpaceX’s most powerful launch vehicle but has not yet been used commercially.  The mission would mark Starship’s first attempt to reach Earth orbit and is expected to deploy the newest generation of Starlink V3 satellites.

This prompted Cathie Wood to say that each Starship launch could generate about $1 billion in revenue. With Musk targeting 10,000 flights annually by 2030, Wood said that could translate to $10 trillion in Starship revenue if the goal is achieved.

Starlink Business Continues To Grow

Meanwhile, Starlink could soon add another airline customer. Vietnamese carrier Vietjet is expected to announce an agreement to install Starlink internet on 120 aircraft, according to documents Reuters reviewed on Wednesday. The potential deal would further expand Starlink’s aviation business as SpaceX grows its satellite network alongside its longer-term AI ambitions.

Billionaire investor and Baron Capital CEO Ron Baron said on Wednesday that SpaceX could eventually be worth $14 trillion to $15 trillion as Starlink continues to grow.

Retail’s Take On SPCX

Retail sentiment surrounding SPCX on Stocktwits turned ‘neutral’ from ‘bearish’ over the past 24 hours.

One user said that a “truly successful Starship test flight could propel” SPCX stock much higher.

View this Stocktwits post

SPCX shares are trading 12% higher than their IPO price.

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