2 High-Growth AI Stocks I'd Be Buying Instead of SpaceX
Broadcom and AMD look like the much better AI stocks to buy right now.
2 High-Growth AI Stocks I'd Be Buying Instead of SpaceX
Overview
Space Exploration Technologies (NASDAQ: SPCX) -- otherwise known as SpaceX -- has caught investors' imagination after a hot initial public offering (IPO) and promises of huge revenue figures in a few years. While its internet satellite business, StarLink, is currently its biggest source of profit, SpaceX is trying to position itself as the artificial intelligence company of the future.
The company's reusable rocket launch business gives it a cost advantage in getting satellites and other payloads into space. When Elon Musk merged his xAI business, home to his Grok AI model and AI infrastructure business, with SpaceX, it was with the goal of using this platform to eventually develop data centers in space. With near-constant sunlight, solar-powered data centers orbiting Earth could help solve AI's power consumption problem -- making it an intriguing idea.
Details
However, there are technical issues to work out, including developing a way to cool the system in the vacuum of space, designing chips that can withstand cosmic radiation, and creating robots that can assemble and maintain these data centers in space. While Musk has predicted SpaceX could generate $1 trillion in revenue by 2030, that appears to be a moonshot bet, and it will have to overcome a lot of obstacles to achieve that goal.
Source
Originally published at www.fool.com.
