Morgan Stanley Keeps Overweight on SpaceX, $300 Price Target

Morgan Stanley analyst Adam Jonas reiterated an Overweight rating and $300 price target on SpaceX (NASDAQ: SPCX).

“When the agents become the network… Distributed Inference Cloud: The part of the SPCX story that we believe holds the greatest growth potential, and that is being largely ignored/not contemplated by investors, is the Distributed Inference Cloud.

Investors are already witnessing some degree of corporate/regulatory/social angst toward data centers.

We see SPCX’s efforts as instrumental in helping to get the Super Intelligence Economy (SIE) and the Physical Intelligence Economy (PIE) on the next leg of growth and economic development.

As the ‘density’ of physical agents increases, we expect incrementally greater intelligence capability of the collective mobile swarm.

Author’s note: Readers of our research may have noticed that I like to draw on examples from the animal kingdom (frequently insects) to convey a point about physical AI. There’s a good reason for that.

Nature is unrelenting in its effort to maximize useful work while minimizing energy usage.

If you want evidence of what embodied distributed inference robots can do working together as a swarm – just look in the mirror.

Your brain has the compute equivalent of hundreds of petaflops running at only 20 watts (between 1 and 2 LED light bulbs).

Your 86bn neurons and 100 trillion synaptic connections (getting its fuel from the sun) are capable of solving special and general relativity without going to a data center. Lessons from ants.

We find the analogy of an ant colony may be useful here.

An individual carpenter ant may have limited usefulness to the broader colony – it can drag a splinter of wood or use its pincers to defend its queen.

However, a mature colony of 15,000 ants can work together as one organism in an intelligent swarm – sharing information across the colony through pheromones and microvibrations along the ’ant highway.’ Now imagine physical and digital AI swarms in the tens or hundreds of billions sharing information at the speed of light (c).

We ask investors to be prepared to hear about the Distributed Inference Cloud and physical AI swarms in the coming year.

From our seat, we think this subject is very close to breaking out in the investor discussion. Gradually… then suddenly.”

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