Investing.com -- Morgan Stanley believes investors are overlooking the breadth of SpaceX’s ambitions, arguing the company is best understood as a machine for turning energy into intelligence rather than a space business.

Analyst Adam Jonas said the range of SpaceX’s activities can make it hard to see the unifying thread. Beyond launching rockets, the company builds launch pads, ground stations and data centers, manufactures satellites and solar panels, is buying telecommunications spectrum, develops AI models, and plans to make semiconductors with partners onshore.

“SpaceX is arguably the most vertically integrated manufacturer and infrastructure player I have seen in over 3 decades on Wall Street,” Jonas wrote.

He framed the strategy around a single relationship, stating: “SpaceX converts energy (e) into intelligence (i) at scale through physical agents - robots (r).”

Jonas added that a small amount of energy can create an enormous amount of intelligence if connected to a pervasive network of agents.

The analyst argued SpaceX is not entering telecoms simply to become a mobile operator. Instead, he believes the company envisions a future in which data sent over wireless networks multiplies by several orders of magnitude.

Furthermore, Jonas said the part of the story with the greatest growth potential, and the one investors are largely ignoring, is what he calls the Distributed Inference Cloud. He drew an analogy with an ant colony, where individual insects achieve little alone but a mature colony works as a single intelligent organism.

At just over $160 a share, he said the implied sales multiple on the enterprise AI business is in the low single digits. The analyst believes each additional gigawatt of compute could add $27 to the stock.

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