Nvidia’s profitability and lower valuation lead a Motley Fool writer to prefer it to SpaceX. Nvidia’s second-quarter revenue rose 106%, with a 66% operating margin; SpaceX’s revenue rose 92% to $4.1 billion, but it reported a $541 million GAAP net loss.
Nvidia owns 122.8 million SpaceX shares, valued in the article at close to $20 billion; SpaceX has said it will use Nvidia chips exclusively across its business. The writer argues this could let Nvidia benefit from SpaceX’s growth.
The article says SpaceX is valued at nearly $2 trillion, roughly 100 times sales, and that its prospectus identified a $28.5 trillion addressable market, nearly all tied to future developments. It contrasts this with Nvidia’s 28.5 price-to-earnings ratio and existing AI-chip business. Author Jeremy Bowman disclosed he owns Nvidia shares; The Motley Fool also disclosed a position in and recommendation of Nvidia.
