Morgan Stanley: Space is the "ultimate backyard" for computing power; maintains "Overweight" rating on SpaceX (SPCX.US)

Morgan Stanley released a research report maintaining its "Overweight" rating on SpaceX (SPCX.US) and a $300 price target, implying nearly 90% upside from the October 2 closing price of $158.96. Analyst Adam Jonas's team put forward a bigger thesis: space is becoming the ultimate venue for converting energy into intelligence in the AI era. Morgan Stanley points out that space is the ideal place to convert energy into intelligence at scaleit is like a "big, cold, sun-drenched backyard." As ground-based data centers hit power bottlenecks and siting controversies, the weight of this logic is rising. The report specifically flags a new phenomenon: "Space Washing." As the anti-data-center movement gains momentum, more and more companies will begin touting the benefits of space, moving the compute narrative into the heavens. Morgan Stanley notes that several tech giants have already made clear moves in space AI infrastructure, and SpaceX is not the only player placing big bets. Renamed SpaceXSI: The "Superintelligence" Ambition Behind a Single Letter Musk announced that he is renaming his AI division SpaceXAI to SpaceXSIupgrading from "Artificial Intelligence (AI)" to "Superintelligence (SI)." Morgan Stanley urges investors to savor the deeper meaning: the move echoes Trump's executive orderchanging "artificial intelligence" to "superintelligence" in non-statutory executive documents. Previously, Musk made a high-profile appearance during China's recent state visit, and was just appointed by Defense Secretary Hegseth as co-head of "Project Meridian," sharing the title with Anduril CEO Palmer Luckey and former House Speaker Gingrich. Morgan Stanley states bluntly that these seemingly trivial, unrelated events actually form a clear thread: forces represented by the "Muskonomy" are being viewed as a key piece of the U.S. national strategy to rebuild domestic manufacturing and defense capabilities. Valuation Breakdown: How the $300 Figure Was Calculated Morgan Stanley uses a sum-of-the-parts (SOTP) method, breaking SpaceX into four pieces: space business at $8, connectivity business (Starlink) at $118, X and Grok at $8, and enterprise AI at $165. The enterprise AI component alone accounts for more than half, but has already been discounted by 50% due to execution risk. From "the last mile of AI" to "the superintelligence renaming game," what Morgan Stanley's report is really saying is this: when the physical bottlenecks of compute manifest on the ground, space is no longer a sentimental narrative but the next main battlefield for AI infrastructureand SpaceX is standing right at the starting line of this track.