Motley Fool says STMicroelectronics may offer a better AI and satellite investment than SpaceX. Management expects its data-center revenue to reach $1 billion in 2026 and more than double in 2027, with SpaceX-related revenue totaling $3 billion over 2026–28.
STMicroelectronics makes optical-connectivity chips that let AI servers transmit data to one another, as well as power-conversion and thermal-management components; it does not make the heavy-duty processors used to train and run AI. Its SpaceX partnership includes radio-frequency chips that help steer beams toward satellites, plus specialized chips for satellites and ground equipment. The company guided for $18 billion in revenue by 2028 at its 2024 Capital Markets Day.
The article says SpaceX faces execution risk and will likely need additional capital to fund its expansion; it describes the stock as trading at around 100 times sales. STMicroelectronics trades at about 37 times forward earnings, but the article warns that cyclical earnings could push its multiple lower as earnings peak.
