US Stock Market Move | SpaceX (SPCX.US) rose by more than 5% as Musk claimed that AI will account for 99% of SpaceX's value in five years.

On Wednesday, SpaceX (SPCX.US) rose over 5% in early trading, accumulating nearly a 30% increase from its listing low, now reported at $140.13. In terms of news, Musk announced at the SpaceX all-hands meeting that AI revenue will "definitely" surpass all other business revenues of SpaceX for the first time in September, setting a goal for AI computing power to reach 10 gigawatts by the end of next year, corresponding to a potential annual revenue of $300 billion to $500 billion. He proclaimed, "We must win in AI; the future will be a world of AI and Siasun Robot & Automation." This is also his clearest timeline and scale forecast for SpaceX's AI business. At the meeting, he said, "In the long run, in the not-too-distant future, probably within four to five years, AI will account for 99% of SpaceX's value. I dare say that in five years, AI will definitely represent 99% of SpaceX's value. And the value of SpaceX will be an astronomical number." Morgan Stanley believes that the market is extremely conservative in pricing SpaceX's AI business, with an implied valuation of only about $12 per share for the AI business after stripping away the space operations. The acquisition of Cursor is a key move in building an end-to-end enterprise AI platform, leveraging computational power, data, and ecological synergy, with Cursor's ARR expected to reach $33 billion by 2030. They maintain a baseline target price of $300, with a bullish scenario seeing it reach $600, representing a potential increase of 350% from the current stock price.