Morgan Stanley has told clients that SpaceX shares trading around $100 imply the company's artificial intelligence business is worth nothing after its merger with xAI. The investment bank called the current valuation an attractive entry point.
What the note says
In a research note, Morgan Stanley analysts said the $100 share price effectively assigns zero value to SpaceX's AI operations post-merger. They argued that the market is overlooking the potential of the combined entity's AI capabilities.
An attractive entry point
The bank described the valuation as an attractive entry point, suggesting that investors who buy in at these levels could benefit if the AI business gains traction. The note did not provide a target price but highlighted the disconnect between the share price and the underlying assets.
SpaceX shares are not publicly traded, but the company's valuation in private markets has been a subject of intense speculation. The xAI merger, completed recently, was seen as a move to strengthen SpaceX's position in the artificial intelligence space.
Morgan Stanley's assessment stands out because it directly addresses the market's apparent dismissal of the AI division. Other analysts may revise their views based on this analysis.
