1247 ET - Enterprise AI represents SpaceX's largest opportunity, Morgan Stanley analysts say in a note, initiating coverage with an overweight rating and a $300 price target. They model enterprise AI revenue reaching $86 billion in 2028 and growing to $2.5 trillion in 2040. Short term, the opportunity lies in the "neocloud" model of renting out compute capacity, as with SpaceX's existing deals with Anthropic and Google, which should be the majority of enterprise AI revenue until 2028. Eventually, offering managed AI infrastructure and end-to-end AI services should take over as the growth driver, especially given SpaceX's acquisition of Cursor and its unique data and product set. Despite the hype around space-based data-centers, the company's AI economics on Earth, including cost per watt and deployment speeds, remain underappreciated, the analysts add. SpaceX slides 5%.(elias.schisgall@wsj.com)

(END) Dow Jones Newswires

July 07, 2026 12:47 ET (16:47 GMT)

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