Space Exploration Technologies (NASDAQ: SPCX) has been the most-talked-about stock of the year, and it’s finally starting to take flight. It’s only up 4% since its first-day closing price, but it’s trading up 55% since it bottomed out in August.
It has become the sixth most valuable company in the U.S., with a $2.2 trillion market cap, but Nvidia (NASDAQ: NVDA) is keeping its top spot, getting closer to a $6 trillion market cap. If I had a choice of investing $10,000 in either one, here’s what I would do.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
The case for SpaceX: Massive opportunities
It hasn’t paid to bet against Elon Musk in the past. Tesla has revolutionized the auto industry, and Tesla stock has gained 23,440% since going public in 2010. He has also been involved in several other major tech companies, including PayPal Holdings and OpenAI.
SpaceX is the culmination of many of Musk’s innovations, bringing together the SpaceX rocket-launching business, the Starlink satellite broadband business, and the SpaceXAI artificial intelligence (AI) model. These are exciting innovations that are already in motion and making money, and the company sees a massive addressable market. It’s planning to go to Mars, set up shop on the moon, and put data centers into space.
In the company’s first earnings report since going public, SpaceX demonstrated robust growth across its businesses. Total revenue increased 92% year over year, and net loss nearly halved to $541 million. The Starlink business reported $1.7 billion in operating income, a 79% increase over last year, and doubled subscribers to 12 million, while the rocket business remains the largest commercial rocket-launching business in the world. The two segments work together, since many of SpaceX’s launches bring Starlink satellites into space. Starlink has more than 11,000 satellites in low Earth orbit and has plans for 100,000 in total to provide coverage to every spot on Earth.
SpaceX also plans to have 1 million Starmind AI satellites, which are mini data centers in space. Management sees its biggest opportunities in AI, and it has signed some important deals recently, including one with Anthropic, which will rent Nvidia chips from SpaceXAI’s data centers, potentially worth $84.5 billion through 2029.
