SpaceX’s $60B Cursor Bet Opens Door To $600 Bull Case, Says Morgan Stanley

• At current levels, Morgan Stanley estimates SpaceX’s AI business is worth about $12 per share, a discount to neocloud rivals.
• The brokerage expects Cursor’s annual recurring revenue to reach $8 billion by year-end and roughly $33 billion by 2030.
• Arete raised SpaceX’s price target to $450 from $401 and kept a ‘Buy’ rating, according to The Fly.

SpaceX (SPCX) is increasingly being valued as an AI infrastructure play, not just a rocket and satellite company. Morgan Stanley’s $600 bull case is getting renewed attention following SpaceX’s $60 billion acquisition of AI coding platform Cursor, a deal the brokerage believes could turn into a meaningful contributor to the company’s rapidly expanding AI business. 

Morgan Stanley maintains a $300 price target for SpaceX, but its bull-case valuation assumes faster execution across AI, Starship and orbital compute. 

Why Cursor Matters To SpaceX’s AI Story 

According to Investing.com, Morgan Stanley estimates Cursor could add $2.5 billion to SpaceX’s revenue in 2026 and $13 billion in 2027, accounting for about 10% and 19% of projected AI revenue, respectively. The firm expects Cursor’s annual recurring revenue to reach $8 billion by year-end and roughly $33 billion by 2030.

At current levels, Morgan Stanley estimates SpaceX’s AI business is worth about $12 per share, a discount to neocloud rivals.

Arete Raises SpaceX Price Target To $450 

Morgan Stanley isn't alone in maintaining a bullish view on SPCX. 

Separately, Arete raised the price target to $450 from $401 and maintained a ‘Buy’ rating, according to The Fly. This represents a 224% upside potential from current levels.

At the time of writing, SPCX shares were down 1% in pre-market trading. The stock is on track to reverse a three-session winning streak that saw it climb above the listing price of $135 for the first time since mid-July.

Why Is SpaceX Acquiring Cursor?

SpaceX exercised its option to acquire Cursor via a $60 billion deal in June through an all-stock deal. The transaction is expected to close before the end of August, The Information reported last week.

Cursor is an AI-powered platform that helps developers write, edit, debug, and review code. The company says it is used by more than 50,000 businesses and over 64% of Fortune 500 companies.

The acquisition would give SpaceX’s AI division an established corporate customer base and a large pool of coding-interaction data. The companies have already worked together since April, including jointly training Grok 4.5 using Cursor data and making the model available within the platform.

Cursor could eventually be divided among several SpaceXAI teams, while its brand may be phased out from future software releases, according to the report.

Retail’s Take On SPCX’s Cursor Deal

Retail sentiment surrounding SPCX on Stocktwits remained in the ‘Bullish’ zone over the past 24 hours, amid ‘high’ message volumes. However, chatter was mixed.

One user said that the $60 billion valuation would be easier to justify if Cursor becomes an “operating system for coding agents.”

Another user says the next resistance level is at $150.

The stock has dropped 14.5% since its listing.

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