Morgan Stanley Highlights Undervalued AI Assets in SpaceX Amid Recent Stock Decline
On July 24, 2026, SpaceX (SPCX) experienced a mixed performance following its Starship test flight. While the mission achieved key milestones such as satellite deployment and heat-shield testing, technical issues with engine relight during descent raised concerns about booster reliability. Despite these challenges, Morgan Stanley analyst Adam Jones argues that investors are underestimating the value of SpaceX’s AI operations in favor of focusing on launch services and connectivity. Jones notes that market sentiment has deteriorated due to worries over capital expenditures, macroeconomic uncertainty, and an upcoming insider lockup expiration. However, he believes this creates a buying opportunity as Morgan Stanley assigns significant valuation weight—over 50%—to SpaceX’s AI business in its $300 price target. The stock closed at $115 on July 24, down from the IPO price of $135 and far below its peak of over $225.64 just weeks earlier.
Topics: AI business valuation Morgan Stanley SpaceX stock performance