Key Highlights
- Shares of SpaceX climbed as high as 11% during Wednesday’s session after Musk projected AI revenue could dominate all other divisions by next month
- Morgan Stanley maintained its Buy recommendation with a $300 price objective on SPCX stock
- Norway’s massive $2.3 trillion sovereign wealth fund revealed a 0.05% position in SpaceX valued at roughly $1.2 billion
- The Norwegian fund reported an unprecedented half-year gain of $184 billion, fueled by Asian technology holdings
- Analysts maintain a Moderate Buy stance on SPCX with a mean price objective of $231.15, suggesting 58% potential appreciation
Shares of SpaceX experienced a significant rally on Wednesday, climbing as much as 11% before settling with a 9.65% gain. The surge came after the company shared footage from an internal company-wide meeting on X, where Elon Musk informed team members that artificial intelligence revenue could potentially outpace all other business segments by September.
Space Exploration Technologies Corp., SPCX
During his remarks, Musk characterized the AI initiatives within SpaceX as “an extremely important part” of the organization’s future. He explained that the AI systems would be developed using proprietary SpaceX data and encouraged employees by telling them they serve as “the parents of the AI.”
Musk went further to forecast that AI-generated revenue would “far exceed” all other business operations during the fourth quarter of this year.
Adding fuel to the rally, Morgan Stanley’s Adam Jonas maintained his Buy recommendation along with a $300 price objective for SPCX shares. Jonas contends that the market is significantly underestimating the value of SpaceX’s artificial intelligence capabilities.
According to his sum-of-the-parts valuation framework, Jonas noted that market participants are assigning SpaceXAI valuations below those typically afforded to independent neocloud competitors.
Jonas characterized the AI offering as transcending a simple cloud infrastructure play, highlighting an integrated technology stack encompassing real-time information processing, computational power, network connectivity, and advanced intelligence. He observed that the market is currently assigning “near zero credit” to this platform.
The analyst also identified several imminent catalysts, including forthcoming AI model enhancements such as updated Grok versions and developments related to the Cursor acquisition.
Norwegian Sovereign Fund Discloses SpaceX Investment
In additional Wednesday developments, Norway’s Norges Bank Investment Management (NBIM), which oversees the planet’s largest sovereign wealth fund valued at $2.3 trillion, announced a 0.05% ownership position in SpaceX worth approximately $1.2 billion.
NBIM achieved an unprecedented first-half profit of $184.9 billion, propelled primarily by strong performance in Asian technology equities. The fund generated a 9.4% return during this timeframe. Deputy CEO Trond Grande indicated the fund has maintained “roughly index rate” exposure to SpaceX throughout the summer months.
Among the fund’s largest positions are a 1.3% ownership in Nvidia valued at $61.8 billion and a 1.2% stake in Apple worth $52.7 billion. Its Tesla holdings represent 1% ownership, valued at approximately $15.7 billion as of the end of June.
SPCX Stock Performance Since Public Debut
SpaceX shares experienced a strong launch during their June IPO but subsequently declined sharply, erasing hundreds of billions in market capitalization through the end of July. Earlier this week, the stock closed above its initial public offering price for the first time in several weeks.
The relationship between NBIM and Musk has encountered some tension points. The Norwegian fund opposed his $56 billion Tesla compensation package in 2024 and subsequently voted against a trillion-dollar Tesla pay proposal during the company’s 2025 annual shareholder meeting.
Analyst sentiment on SPCX currently stands at Moderate Buy consensus, with 24 Buy ratings, five Hold ratings, and two Sell ratings issued since the IPO. The consensus price objective of $231.15 represents potential upside of approximately 58% from prevailing price levels.
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