SpaceX Made $2.6 Billion From AI Last Quarter

Wall Street's top space analyst just put a $300 price tag on SpaceX.

That's more than double where the stock sits today. And Morgan Stanley's Adam Jonas has a $600 bull case on top of that.

But here's what caught our eye. The reason Jonas is so bullish has almost nothing to do with rockets.

Let me explain.

SpaceX posted its first-ever earnings report on August 4. Revenue hit $7.8 billion for Q2… up 92% from a year ago. Starlink subscribers doubled to 12 million. The connectivity business alone pulled in $4.3 billion and turned a $1.7 billion operating profit.

Those are stunning numbers.

But investors barely flinched at Starlink. They zeroed in on something else — a segment that barely existed 18 months ago.

AI.

SpaceX's AI division booked $2.6 billion in Q2 revenue. That's up 247% year over year. The company signed $14.1 billion in new cloud service deals during the quarter. And it moved to close a $60 billion all-stock deal for Cursor, the AI coding tool that went viral earlier this year.

In other words, SpaceX is building one of the largest AI compute platforms on the planet… and doing it inside a rocket company.

So where did the cash go? Into GPUs and data centers. AI capex hit $15.8 billion in Q2 alone. That's 86% of the company's total capital spending. Total capex came in at $18.4 billion — well above the $13 billion analysts expected.

That spooked investors. The stock dropped 8% after hours.

But Jonas sees it differently. He thinks the market is pricing SpaceX's AI arm at roughly $12 a share. He estimates Cursor's annual recurring revenue could reach $8 billion by year-end and $33 billion by 2030.

Now, I know what you're thinking. "SpaceX is a rocket company. Why should I care about AI?"

And that's exactly the point. SpaceX isn't just a rocket company anymore. It has three legs: Space ($962 million in Q2 revenue), Connectivity ($4.3 billion), and AI ($2.6 billion). Two of those three have nothing to do with launches.

The stock has clawed back to $139, just above its $135 IPO price, after falling as low as $105 in early August. Bank of America kept its buy rating. Bernstein raised its target to $248.

Meanwhile, SpaceX is sitting on $100 billion in cash and a $47.5 billion backlog.

That's not a company in trouble. That's a company spending enormous sums because it believes the payoff is even bigger.

Whether you agree with that bet depends on one question. Do you think SpaceX can do for AI compute what it did for launch costs — cut them by 95% and own the market?

Jonas thinks so.

We'll see.

New Patent Reveals Elon Musk’s Next Breakthrough: M.A.G.I.

Take a look at Elon Musk’s new patent below…

Because it protects a new invention that could rewrite the future of wealth forever.

I’m talking about a radical new form of AI I call “M.A.G.I.”

One so revolutionary that Elon called it an “infinite money glitch.”

Click here to see the details because he believes this is a once-in-a-generation opportunity to create wealth on a scale most people can’t even comprehend.

What’s the upside potential here?

I know this is going to sound crazy…

But Elon is projecting growth of over 7,000,000%.

Let that sink in.

That’s enough to turn $100 into more than $7 million.

This sounds absolutely insane.

But then again… everything Elon has ever done sounded insane at first.

Self-driving cars.

Reusable rockets that land themselves.

Brain chips that let paralyzed people control computers with their minds.

Crazy ideas.

But he turned them into trillion-dollar realities.

So here’s the real question…

Will you watch Elon build another empire from the sidelines…

Or will you finally position yourself to potentially become one of the winners in his next trillion-dollar revolution?

Click here to get the details because I believe Elon will flip the switch on this new invention by the end of this month.

Not just a product buy. SpaceX agreed to acquire Anysphere, the maker of Cursor, in an all-stock deal valued at $60 billion, with closing expected in Q3. Jonas's upside hinges on Cursor evolving from a "harness" — a tool wrapping other AI — into a "frontier" model that trains its own. The bridge is compute: Cursor gets access to SpaceX's Colossus supercomputer through its AI arm. Cursor is already used by over 64% of the Fortune 500. Watch for post-close details and new model releases.

Bears braced for a crash. More than 911 million insider shares became eligible to sell on August 6, a tranche worth around $101 billion. Investors spent weeks fearing a wave of selling. It didn't arrive. The stock rose the day of the unlock and rebounded sharply that week. Jonas argued the gap between bearish mood and steady fundamentals made for an attractive entry. Sometimes the feared event clears the air. Watch whether the calm holds into Q3.

A wide spread. Analysts are overwhelmingly positive but nowhere near agreement on the number. Across roughly 32 analysts, targets run from about $75 to $800, with an average near $227. Morgan Stanley sits at $300 base, $600 bull. Others are climbing — Arete lifted its target sharply. But Morningstar values just the core businesses at around $40 a share, a reminder of how much rests on AI. Watch how far the "AI leg" narrows that gap.

Look past the AI headlines, and the $600 dream still runs through a rocket.

Here's the chain. Morgan Stanley's biggest upside case doesn't just need Cursor to work. It needs SpaceX to deploy AI data centers in orbit, at scale, for about half of today's cost. And that hinges entirely on Starship, the giant reusable rocket still in development.

Why does that matter?

Because putting computers in space is only worth it if launch is cheap and frequent. Starship is the machine meant to make that true. Without it flying often and cheaply, orbital AI compute stays a slide, not a business.

So the two halves of the story connect. The AI arm is the near-term catalyst. But the truly enormous valuation leans on the same launch mastery that built the company in the first place.

The near-term signposts are clearer. Jonas flagged more Cursor disclosure after the deal closes, a run of new Grok model releases in the coming weeks, and the Q3 earnings report. Each is a chance for the market to re-rate the AI segment up, or not.

The longer bet is patient. Orbital data centers and satellite-linked devices are years out, and every one is unproven at scale.

So watch two clocks. The fast one is Cursor and Grok this quarter. The slow one is Starship, still the hinge on which the biggest dreams swing.

Let's keep this simple.

When you buy a stock, you're buying all of a company's parts at once, bundled into one price. But investors don't value every part equally. Some they trust. Some they doubt. And the doubted parts get priced as if they're worth almost nothing.

That's what's happening with SpaceX.

Investors know how to value rockets and Starlink. They see the revenue, the subscribers, the launches. So they pay a fair price for those. But the AI arm? It's new, it's burning cash, and its payoff is unproven. So the market barely counts it.

Morgan Stanley's math makes this vivid. At the current price, it figures the AI business is valued at only about $12 a share. Strip that out, and you're paying mostly for rockets and Starlink alone, getting the AI arm nearly free.

Here's why that matters. If the doubted part starts to prove itself — real revenue, real profit — the market has to re-rate it. The "free" leg suddenly gets a price. And the whole stock can jump, even if rockets and Starlink don't change at all.

That's the bull case in one idea. It's not that SpaceX must invent something new. It's that the market must stop pricing a real, growing business at zero.

But the reverse is also true. If AI keeps burning cash without the payoff, the doubt hardens. The discount stays. And all that spending just looks like a drain.

Follow the doubted part, because that's where the surprise lives.