Morgan Stanley backs SpaceX: target price doubles, revenue grows 17x over five years

Deep Tide TechFlow news, on July 20, ever since SpaceX went public about a month ago, its stock price has been like a roller coaster. Although SpaceX once surged to $225, it then fell back to about $125. However, Adam Jonas, the Morgan Stanley analyst who has long tracked the company’s research, has set the stock’s benchmark target price at $300 per share. This target implies tremendous upside—more than double the current share price. But such an ambitious target depends on SpaceX being much more than just a space stock. It is essentially a bet on vertical integration.

Morgan Stanley expects SpaceX to grow at an astonishing pace in the foreseeable future. The study assumes that SpaceX’s revenue will rise from $18.7 billion in 2025 to $319 billion in 2030, and then to $3.3 trillion in 2040. Much of the growth comes from the AI sector, and Morgan Stanley expects SpaceX to build orbital infrastructure for global connectivity and AI.

Musk agrees with this. In the company’s S-1 filing, the potential market size is set at about $28.5 trillion, with everything related to AI except $2 trillion. SpaceX plans to launch a large AI satellite constellation called “Starmind,” essentially building data centers in orbit. The company hopes to use its Starship rocket to launch its first batch of AI satellites as early as next year. (Jin10)