Nvidia vs. SpaceX: BofA Sees SPCX Up 61%, Nvidia Joins $668M AI Deal
Investors weigh Nvidia against SpaceX as Bank of America projects a 61 percent upside for SpaceX following its Starship orbital success, even as Nvidia joins a major AI cloud financing round.
Many investors continue to weigh Nvidia against SpaceX, particularly following the latter’s most significant technical achievement to date. When comparing the two stocks, Nvidia maintains an advantage due to its consistent profitability, whereas SpaceX shares are driven largely by the future trajectory of its orbital programs and AI hosting initiatives. Both rank among the premier artificial intelligence equities, and a valuation assessment still tilts in Nvidia’s favor, even as Wall Street grows more optimistic about SpaceX.
Also Read: SPCX Stock Surges as Mizuho and Morgan Stanley Turn Bullish
Nvidia vs SpaceX Valuation: Which AI Stock Has More Upside?
Nvidia’s market capitalization hovers around $5.2 trillion, with a share price near $212 and a trailing price-to-earnings ratio of approximately 27.6x, a multiple underpinned by tangible, expanding earnings. Meanwhile, SpaceX holds a valuation near $2 trillion, with its stock trading between $145 and $146 following a 2% decline on positive news, having moved within a 52-week range of $104.83 to $225.64. Bank of America has amplified the discourse surrounding these valuations, as analyst Ronald Epstein set a price target of $235 for SpaceX, representing an upside of roughly 60% over its reference price.
Nvidia’s Case In The Valuation Fight
Within this market comparison, Nvidia’s valuation is driven by its near-monopoly on the semiconductors powering the current AI boom, spanning from Blackwell to the newer Vera Rubin architecture. Demonstrating an investment reach that extends beyond hardware, Nvidia recently participated in a $668 million financing round for AI cloud enterprise GMI Cloud, alongside South Korean investors such as KB Investment. This reliable market demand explains why analysts view Nvidia as the more conservative choice between the two AI equities, notwithstanding the limitations its massive scale imposes on future percentage growth.
Starship’s Orbital Win Boosts BofA’s SpaceX Call
SpaceX shares have experienced substantial volatility since their debut in June. A Nasdaq regulation expedited the company’s inclusion in the Nasdaq-100 on July 7, compelling institutional funds like the Invesco QQQ Trust to acquire shares on behalf of millions of retirement accounts. On September 28, SpaceX achieved its most notable technical milestone yet by successfully launching Starship into orbit, deploying 26 Starlink V3 satellites, and recovering the Super Heavy booster. Despite these accomplishments, SpaceX stock dropped 2% to $145.47 immediately afterward.
Evaluated strictly on growth potential, a comparative analysis at this stage would likely favor SpaceX, given that the newly issued Wall Street price target suggests a significantly higher ceiling for expansion.
What SpaceX And Nvidia Officials Are Saying
Representatives from both organizations have spoken quite candidly about their ongoing relationship, yielding several notable remarks worth quoting directly.
Elon Musk, SpaceX CEO, said:
“highly confident that SpaceX will be launching Nvidia VR NLV72 AI computers in space”
Jensen Huang, Nvidia CEO, said:
“Space computing, the final frontier, has arrived.”
Bret Johnsen, SpaceX CFO, said the company’s AI hosting deal gave management:
“even more conviction”
As of this writing, Nvidia remains the preferred option for steady financial returns, but SpaceX has secured renewed endorsement from Bank of America closely following Starship’s orbital debut. While Nvidia’s preeminent standing among artificial intelligence companies remains secure for now, the potential rewards for SpaceX appear increasingly tangible.
