SpaceX Is Becoming a "Neocloud." Here's the Beaten-Down AI Stock 75% Off Its Highs That Could Benefit the Most.
One analyst applauds SpaceX's neocloud offerings, but there may be a massive under-the-radar winner you should buy instead.
SpaceX Is Becoming a "Neocloud." Here's the Beaten-Down AI Stock 75% Off Its Highs That Could Benefit the Most.
Overview
On Monday, a Wall Street analyst wrote favorably about certain semiconductor stocks with a vendor relationship to Elon Musk's Space Exploration Technologies (NASDAQ: SPCX), or SpaceX.
While several companies in SpaceX's supply chain were mentioned as beneficiaries, most of the mentioned stocks are at or near their all-time highs. However, one AI infrastructure stock should also benefit, perhaps even more than the others, and it's the only stock in the group trading at a reasonable valuation, 75% below its all-time high.
Details
On Monday, GF Securities analysts Jeff Pu and Alicia Xia wrote a note saying that, as SpaceX has begun renting out excess computing power to other AI companies, and given that it just raised a whopping $86 billion in last week's initial public offering, there shouldn't be any obstacle to SpaceX building a massive amount of computing infrastructure. The theory is that this will benefit AI hardware makers that already have a strong relationship with SpaceX.
Source
Originally published at www.fool.com.
