JPMorgan Says Grok Is Finally Worth Taking Seriously. SpaceX Stock Could Reach $240.

JPMorgan continues to maintain an Overweight rating on SpaceX (SPCX) with a $240 price target, reaffirming its bullish stance on the company. The firm has grown confident in Grok, SpaceX's AI operations, after the recent acquisition of Cursor. Cursor reached $4 billion in annual recurring revenue in the latest quarter, contributing significantly to SpaceX's revenue streams.

The company's AI segment generated $2.56 billion in second-quarter revenue, reflecting a 247% year-over-year increase. SpaceX also secured $26 billion in annualized cloud revenue from agreements with Google and Anthropic. Despite a current $1.26 billion operating loss, SpaceX's infrastructure around these models remains profitable.

The firm's AI segment is projected to generate $47 billion in annual revenue, along with substantial government contracts for secure communications and space-based sensing.