JPMorgan analyst Doug Anmuth argues that Space Exploration Technologies Corp‘s (NASDAQ:SPCX) narrative is evolving beyond rockets and Starlink. The company’s AI strategy, he argues, is becoming tangible enough to justify keeping its $240 price target—implying nearly 80% upside from Monday’s closing price of $135.
Anmuth pointed to the completion of SpaceX’s acquisition of AI coding platform Cursor on Aug. 14, describing it as a key step toward building a stronger enterprise AI business. Cursor, which JPMorgan estimates generates roughly $4 billion in annual recurring revenue, with about three-quarters coming from business customers, gives SpaceX both an enterprise distribution channel and valuable coding data that can improve Grok’s capabilities.
Anmuth also noted that Grok’s recent progress suggests those investments are already yielding results. The bank said Grok 4.6 improved its standing on the Artificial Analysis Intelligence Index within a month of the previous release while remaining competitively priced, strengthening its appeal for developers and enterprise customers.
Why JPMorgan Thinks AI Could Become a Bigger Growth Driver
Rather than viewing Grok as a standalone chatbot, JPMorgan sees SpaceX building an integrated AI ecosystem.
Anmuth highlighted the launch of Grok Bot, an enterprise-focused AI agent designed to perform tasks across workplace applications, as evidence that SpaceX is targeting the fast-growing market for AI productivity tools. It also expects the company to maintain a monthly model release cadence through the second half of 2026, culminating in Grok 5 later this year.
He further argues that combining Cursor’s coding expertise with roughly 25 years of proprietary engineering knowledge accumulated across SpaceX could give Grok an edge in software development and complex engineering applications.
While that remains an analyst view rather than a company forecast, it underpins the bank’s increasingly constructive stance on the company’s AI prospects.
Investment Takeaway
So far, Grok’s functions—including its lack of safeguards—have received significant industry backlash.
Still, JPMorgan remains bullish. Rather than seeing AI as an adjacent business, the bank expects Grok, Cursor, and enterprise AI products to become core drivers of SpaceX’s long-term growth, alongside launch services and Starlink.
Investors will now be watching whether Grok can realistically contribute meaningfully to SpaceX’s financial performance—and justify the premium valuation JPMorgan continues to assign the stock.
Photo: Samuel Boivin / Shutterstock – ek
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