Space Exploration Technologies NASDAQ:SPCX received a new Overweight rating from Morgan Stanley (MS), with the investment bank saying the aerospace company is well positioned to benefit from growing artificial intelligence infrastructure demand.
Morgan Stanley assigned Space Exploration Technologies NASDAQ:SPCX a $300 price target, implying about 90% upside from the stock's Monday closing price. The firm said the company could capitalize on the expanding need for computing power by combining its energy and connectivity assets with AI-related services over the long term.
Morgan Stanley projects Space Exploration Technologies NASDAQ:SPCX could generate more than $3.3 trillion in revenue by 2040, reflecting expectations for growth across new markets tied to connectivity and physical AI applications. The bank said those opportunities may broaden the company's addressable market over time.
The brokerage also highlighted several risks for Space Exploration Technologies NASDAQ:SPCX, including reliance on founder Elon Musk, regulatory and geopolitical uncertainty, and potential conflicts linked to Tesla (TSLA). It added that future funding requirements and limited market depth could slow the rollout of new technologies.