SpaceX shares climbed 11% after a major Wall Street endorsement of the company’s artificial intelligence strategy fueled renewed investor interest in its growing enterprise software business.
The rally followed a research note from Morgan Stanley, which argued that investors may be significantly undervaluing SpaceX’s emerging AI platform. The move was also supported by comments from Chief Executive Elon Musk, who teased the upcoming release of the company’s Grok 4.7 model.
The market reaction suggests that institutional investors are beginning to view SpaceX as more than an aerospace and satellite company. Instead, the business is increasingly being evaluated as a vertically integrated technology platform combining proprietary data, global connectivity, computing infrastructure and advanced AI models.
Morgan Stanley Sees Untapped Value in SpaceXAI
Morgan Stanley analyst Adam Jonas said recent product launches from SpaceXAI indicate that the company is building a much broader software ecosystem than investors currently recognize.
A key part of this strategy is Grok Bot, an always-available virtual assistant designed to manage complex workflows within cloud environments.
The beta version is currently available to SuperGrok Heavy, Cursor Ultra and Cursor Teams Premium users across desktop and iOS platforms. The system can coordinate multiple AI agents to perform complicated tasks with limited human involvement.
Morgan Stanley views Grok Bot as an early indication of a much larger AI platform rather than simply a standalone software product. According to the bank, SpaceX could combine real-time proprietary data with its own computing resources, global connectivity infrastructure and artificial intelligence capabilities.
SpaceX’s Data and Infrastructure Could Create an AI Advantage
Although Grok Bot faces competition from other agent-based AI tools, Morgan Stanley highlighted two potential competitive advantages.
The first is access to proprietary real-time data. SpaceX can potentially draw information from several major ecosystems, including X, formerly known as Twitter, Starlink network data and Cursor’s developer network.
The second advantage is the company’s physical infrastructure. SpaceX operates an integrated technology stack that combines computing resources with Starlink’s global satellite network.
Morgan Stanley believes these assets could create a significant barrier to competition, particularly in applications that connect artificial intelligence with real-world infrastructure.
Cursor Acquisition Strengthens Enterprise AI Strategy
Morgan Stanley’s latest assessment follows its previous analysis of SpaceX’s acquisition of code-editing platform Cursor.
The bank estimates that Cursor could reach approximately $8 billion in annual recurring revenue by the end of the year, before potentially expanding to around $33 billion by 2030.
Cursor already has a significant presence within the corporate market. Its customer base reportedly includes around 50,000 businesses and approximately two-thirds of Fortune 500 companies.
This existing enterprise footprint could give SpaceX an important distribution channel for future AI services.
Morgan Stanley Highlights a SpaceX Valuation Gap
Morgan Stanley also believes there may be a significant disconnect between SpaceX’s current market valuation and the potential value of its artificial intelligence businesses.
Using a sum-of-the-parts valuation model, the bank estimates that SpaceX’s core launch and Starlink operations are worth approximately $127 per share.
After separating those businesses, Morgan Stanley calculates that investors are assigning only about $12 per share to the company’s consumer and enterprise AI divisions.
That valuation would represent roughly one times estimated 2028 enterprise value-to-sales, below the multiples applied to several standalone cloud and AI infrastructure companies.
Jonas also suggested that an upcoming lock-up expiration could create a potential buying opportunity rather than simply adding selling pressure to the shares.
Elon Musk Highlights ‘Real-World’ AI Engineering
Investor enthusiasm increased further after Elon Musk outlined the development roadmap for Grok 4.7, which is expected to launch later this month.
Musk argued that SpaceX’s combination of physical engineering operations and proprietary technical data could give its AI models an advantage over competitors, particularly in real-world engineering applications.
He also expressed confidence that Grok 4.7 could outperform existing models, while acknowledging that rivals such as Anthropic are continuing to improve their own AI systems.
The comments reinforce SpaceX’s broader strategy of combining artificial intelligence with data generated from its engineering, communications and technology operations.
Grok Development Accelerates
SpaceX has also maintained an aggressive AI product release schedule.
The company recently introduced Grok 4.6, a 1.5-trillion-parameter model built to improve coding, terminal management and enterprise workflows.
The model is priced at $2 per million input tokens and recorded a score of 61 ELO on the Artificial Analysis Intelligence Index, placing it among leading frontier AI systems.
Attention is now shifting toward the next generation of SpaceX AI products.
With the Cursor acquisition expected to close soon, investors will be watching the broader release of Grok 4.7 later this month, followed by the planned introduction of Grok 5 before the end of 2026.
SpaceX’s expanding AI ambitions are increasingly becoming a major part of the company’s investment story. If its combination of proprietary data, enterprise software and global infrastructure delivers the advantages Morgan Stanley expects, artificial intelligence could become an increasingly important driver of the company’s long-term valuation.
