Morgan Stanley Initiates SpaceX Coverage With Wall Street-High $300 Price Target

Morgan Stanley has become one of the most bullish firms on Wall Street regarding SpaceX, launching coverage of the recently public company with an Overweight rating and a $300 price target.

The target stands well above the stock's recent trading price near $160 and is among the highest published forecasts for the aerospace and artificial intelligence company. 

Morgan Stanley analyst Adam Jonas argues that investors are still underestimating the scale of SpaceX's long-term opportunities beyond rockets and satellite internet. 

AI is becoming central to the SpaceX investment thesis

While SpaceX remains best known for Falcon launches, Starship development, and Starlink's satellite network, Morgan Stanley believes the company's future could be increasingly tied to artificial intelligence.

According to the firm's analysis, SpaceX is building a vertically integrated ecosystem that combines launch capabilities, satellite connectivity, data infrastructure, and AI services. The bank believes this could eventually position the company as a foundational infrastructure provider for the AI economy. 

Morgan Stanley's thesis centers on the idea that future AI systems will require vast amounts of connectivity and computing power, areas where SpaceX could leverage both Starlink and its growing AI initiatives.

Revenue projections dwarf current expectations

The bank's projections are exceptionally ambitious.

Morgan Stanley estimates that SpaceX could grow revenue from roughly $45 billion in 2026 to more than $3 trillion annually by 2040, driven by expansion across connectivity services, AI infrastructure, enterprise software, and emerging orbital computing markets. 

Analysts believe Starlink will remain the primary cash-generating business in the near term, while AI-related products and services could become increasingly important contributors over a longer time horizon.

Wall Street remains divided on valuation

Despite the bullish outlook, not all analysts are as optimistic as Morgan Stanley.

Goldman Sachs recently initiated coverage with a $205 target, while other major banks have issued targets ranging from $200 to $255. The disparity highlights the uncertainty surrounding how investors should value a company operating across space, telecommunications, and artificial intelligence. 

Morgan Stanley also acknowledged substantial risks, including significant capital requirements, execution challenges surrounding Starship, and the uncertainty of monetizing future AI and orbital computing opportunities. The firm estimates the company may require hundreds of billions of dollars in funding over the next decade to achieve its long-term vision.