Key Highlights

● Reports said Elon Musk renamed SpaceX's AI unit to "SpaceXSI," though the detail could not be independently confirmed.

● Morgan Stanley's Adam Jonas reiterated an Overweight rating and $300 target the same day.

● SpaceX outpaced peers Rocket Lab and AST SpaceMobile, which had no company-specific news.

SpaceX drew attention on Monday, Oct. 5, after reports said Elon Musk renamed its AI unit "SpaceXSI," as the stock rose on the Nasdaq-100 alongside a bullish Morgan Stanley note and Terafab talk.

The rename reports

Space Exploration Technologies (NASDAQ:SPCX) was in the spotlight on the Nasdaq-100 on Monday after reports said Elon Musk renamed SpaceX's AI unit. According to one report, Musk renamed SpaceXAI to "SpaceXSI," with the "SI" standing for "super intelligence," tying the change to a renaming push from President Trump.

Not every outlet confirmed the detail. Other reports covering the stock's move did not mention the renaming, and the change could not be independently confirmed. It should be read as reported rather than established.

SpaceX shares rose on Monday, though reports differed on how far, with some showing a bigger gain at the close than others reported during the session.

Several other factors were in play. Morgan Stanley analyst Adam Jonas reiterated his Overweight rating with a $300 price target and reportedly called the stock "cheap and getting cheaper." SpaceX also completed three launches in 13 hours earlier in the day.

Terafab talk

Elon Musk also confirmed early talks with Taiwan Semiconductor Manufacturing (NYSE:TSM) about joining Terafab, his Texas chip-manufacturing venture meant to Supply Tesla (NASDAQ:TSLA), SpaceX and xAI.

"Just discussions, but something may come of it," Musk said.

That news lifted TSMC's US-listed shares and weighed on Intel (NASDAQ:INTC), Terafab's only named manufacturing partner since April.

SpaceX outpaced its peers. Rocket Lab slipped and AST SpaceMobile nudged higher, with no company-specific news for either.

SpaceX is in the Nasdaq-100 but not the S&P 500, and its rise helped the Nasdaq-100 close at a record 31,076.44.

The wider market

The Nasdaq Composite jumped 286.45 points to a record 27,477.31, led by mega-cap AI stocks. Nvidia (NASDAQ:NVDA) rose to a record close. The S&P 500 added 51.23 points to 7,773.95, just shy of its summer record, and the Dow rose 90.94 points to 51,267.90.

The 10-year Treasury Yield climbed to its highest level since 2002 after the ISM services prices-paid index hit 74.0, the highest since July 2022. Friday's weak jobs report, showing payrolls up just 29,000, cut bets on an October Fed hike.

Daniela Hathorn, senior market analyst at Capital.com, said: "growth stocks are rallying because Fed expectations have softened, while the Risk-Free Rate against which those valuations are judged remains exceptionally high."

Musk Merger chatter

Speculation about a possible Tesla and SpaceX combination also continued. Musk has said, "Obviously, we can't talk about combining companies," and that it "got to be done with the appropriate process." No deal has been announced.

Cerebras Systems (NASDAQ:CBRS), another AI-linked stock, also rose after OpenAI CEO Sam Altman called it "a close partner" on social media. Retail interest in Musk-linked names stayed high, with Stocktwits' Stocktoberfest event running Oct. 5 to 7 in New York.

Musk-related headlines often move these stocks quickly, so investors tend to weigh official confirmations more heavily than early reports.

What to watch

Investors will look for official confirmation or more detail on the reported AI unit name change, and any update on SpaceX's AI ambitions. Progress in the TSMC talks on Terafab is another key item.

Minutes from the Fed's September meeting are due Wednesday, Oct. 7 at 2 p.m. ET, and the Fed meets again Oct. 27 to 28. The big banks start reporting Earnings from Oct. 13.