Space Exploration Technologies, better known as SpaceX, and Nvidia have a lot in common. They operate in the realm of artificial intelligence, both are trillion-dollar companies, and their CEOs—Elon Musk and Jensen Huang—have bold ambitions.
These companies have both witnessed significant stock price increases. Nvidia’s shares have risen over 300% in the past three years as AI demand accelerated, while SpaceX saw its stock surge 40% in its first three days of trading following its record IPO. Both leaders have now announced forecasts for $1 trillion in revenue.
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Nvidia’s AI dominance
Nvidia leads the AI chip market, selling GPUs that power critical AI workloads. The company has expanded these chips into complete systems, offering a wide range of related products and services. This innovation drive has delivered exceptional earnings growth, with revenue jumping 65% in the latest fiscal year to surpass $215 billion.
Each new product release—roughly annual—sparks strong customer demand. Earlier this year, Nvidia projected that revenue from its Blackwell platform and upcoming Vera Rubin system will reach $1 trillion by 2027. Given current momentum and demand for its GPUs, this target appears achievable.
SpaceX’s transformation
SpaceX operates through three business segments—space, connectivity, and AI—with the space division potentially supporting growth in the other two. Starlink, its satellite internet service, currently drives most of its revenue, accounting for over 60% of the $18 billion total last year.
The AI segment requires heavy capital spending—$12 billion in capex last year—and has secured major contracts worth roughly $26 billion annually with companies like Anthropic and Alphabet. However, translating this into $1 trillion in under five years remains challenging, especially as the stock price has already jumped sharply post-IPO.
Elon Musk recently suggested SpaceX could hit $1 trillion by 2030, potentially exceeding that the following year. While progress in Starlink subscriber growth and reusable rocket tech is encouraging, the path to such revenue so quickly is uncertain.
The verdict
Nvidia offers a clearer trajectory to $1 trillion and trades at a reasonable 23x forward earnings. SpaceX, despite strong fundamentals, faces execution risks amid aggressive investment plans. For these reasons, Nvidia remains the more compelling AI stock right now.
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