JPMorgan Sees Nearly 80% Upside in SpaceX, and It's Not Because of Rockets
JPMorgan kept its $240 target on SpaceX (SPCX) on Tuesday, nearly 80% above Monday's $135 close. Analyst Doug Anmuth's reason has little to do with rockets.
The bank is betting on artificial intelligence (AI). At $240, SpaceX would be worth over $3 trillion. Grok, its AI model, and newly acquired Cursor would carry much of that weight.
Why JPMorgan Calls SpaceX Stock an AI Bet
SpaceX closed its Cursor purchase on August 14. The coding platform generated about $4 billion in annual recurring revenue as of June. Roughly 75% of it came from business customers.
That matters for two reasons. Companies already paying for Cursor can be sold Grok next. Meanwhile, millions of real coding sessions become training data.
SpaceX wanted a coding asset badly. It also approached Cognition, a rival startup that rebuffed its buyout approach this month.
"SpaceX's AI ambitions are coming into sharper focus, and we are increasingly positive on Grok," Anmuth wrote in a note.
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