Morgan Stanley is bullish on SpaceX, setting a $300 target price, and forecasts long-term growth driven by enterprise AI, computing power expansion, and the revitalization of U.S. manufacturing.

Morgan Stanley has dubbed the U.S. advanced manufacturing revival "Tera'Merica," noting its opportunities extend beyond chip reshoring to include rockets, satellites, industrial robots, humanoid robots, autonomous vehicles, and drones, with SpaceX’s aerospace, satellite communications, and AI infrastructure businesses poised to benefit. On the AI compute front, Morgan Stanley projects SpaceX’s AI compute capacity will reach approximately 4.9 GW by the end of fiscal 2027, with the company targeting nearly 10 GW. According to its calculations, each additional 1 GW of nominal compute capacity—assuming $50 per watt in investment, a 70% incremental margin, and a 10x EBITDA valuation—could add roughly $27 to SpaceX’s share value. Based on this assessment, Morgan Stanley maintains an "Overweight" rating on SpaceX, with a $300 price target. The firm is also bullish on the commercialization potential of enterprise AI, though it points out the market remains relatively cautious in valuing related businesses, assigning a 50% discount to enterprise AI valuations. Key risks include the progress of Starship and Starlink, compute capacity buildout costs, and the pace of enterprise AI commercialization.