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LivestreamMenuSpace Exploration Technologies is poised to more than double thanks to its foray into artificial intelligence, especially its acquisition of AI startup Cursor, according to Morgan Stanley. “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,” analyst Adam Jonas wrote Monday in a report to clients. “From our conversations, very few investors are bullish [on] SpaceX’s AI business beyond neocloud, resulting in an upside skewed catalyst path at these levels.” The Wall Street investment bank repeated an overweight rating on SpaceX shares, along with a $300 price target that implies the stock can more than double from Monday’s close. Morgan Stanley served as a lead underwriter for CEO Elon Musk’s $2 trillion initial public offering of SpaceX on June 12. A few days after the IPO, SpaceX agreed to buy Cursor , maker of a popular AI coding tool, for $60 billion in stock. That’s slated to bolster SpaceX’s artificial intelligence business following its merger with xAI earlier this year, potentially making it more competitive with industry giants such as OpenAI and Anthropic. More than 60% of Fortune 500 companies, and 50,000 total enterprises, use Cursor’s coding tool, according to Morgan Stanley. And that high rate of adoption is already boosting its top line. In November 2025, Cursor said it had topped $1 billion in annualized revenue. That success should enable Cursor to provide several catalysts that could push SpaceX shares higher in the near future, Morgan Stanley said. “The catalyst path is shaping up elegantly, in our opinion, as more progress on Cursor can be shared following closing of the transaction (expected within next few weeks) and we see further milestones with subsequent model releases,” Jonas wrote. Morgan Stanley’s recommendation matches the consensus on the Street, where 29 of 36 analysts covering SpaceX rate it a buy or strong buy. SpaceX shares are down about 6% in the past month and are trading a fraction above the June IPO price of $135.Read More
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