BofA Predicts 61% Surge for SpaceX as Nvidia Backs AI Deal

The debate between Nvidia and SpaceX remains a primary focus for investors, particularly following SpaceX’s major technical achievement. Evaluating these equities highlights that Nvidia maintains an advantage based on consistent profits, whereas SpaceX shares are driven primarily by the future trajectory of its orbital programs and AI hosting initiatives. Both are recognized among the leading artificial intelligence equities, and an assessment of their valuations continues to favor Nvidia, even as Wall Street demonstrates increasing optimism regarding SpaceX.

Nvidia vs SpaceX Valuation: Which AI Stock Has More Upside?

Nvidia possesses a market capitalization of approximately $5.2 trillion, with a share price near $212 and a trailing price-to-earnings ratio of roughly 27.6x, a multiple underpinned by tangible and expanding financial returns. SpaceX holds a valuation close to $2 trillion, with shares trading between $145 and $146 following a 2% decline despite positive developments, spanning a 52-week range of $104.83 to $225.64. Bank of America has recently shifted the dynamics of this valuation discussion, as analyst Ronald Epstein established a price target of $235 for SpaceX, representing an upside of approximately 60% compared to the reference price.

Nvidia’s Case In The Valuation Fight

Within this comparison, Nvidia’s valuation is driven by its near-monopolistic control over the hardware powering the current AI expansion, ranging from the Blackwell architecture to the newer Vera Rubin platform. Furthermore, Nvidia participated in a $668 million funding round for GMI Cloud, an AI cloud provider, alongside South Korean entities such as KB Investment, illustrating the broader reach of its financial investments beyond microchips. This reliable demand explains why analysts view Nvidia as the more conservative investment option between the two AI equities, notwithstanding the reality that its sheer scale constrains future percentage gains.

Starship’s Orbital Win Boosts BofA’s SpaceX Call

SpaceX shares have experienced significant volatility since their market debut in June, and regulatory adjustments by Nasdaq expedited the corporation’s inclusion in the Nasdaq-100 index on July 7, requiring institutional funds like the Invesco QQQ Trust to acquire shares on behalf of numerous retirement account holders. On September 28, SpaceX achieved a critical technical milestone by successfully launching Starship into orbit, deploying 26 Starlink V3 satellites, and recovering the Super Heavy booster, though the stock subsequently dropped 2% to $145.47 immediately afterward.

Any evaluation of these equities focused strictly on growth potential would likely favor SpaceX at present, given that the revised Wall Street target suggests a substantially greater margin for expansion.

What SpaceX And Nvidia Officials Are Saying

Leadership teams from both organizations have addressed their collaborative efforts openly, and several statements from executives are highlighted below.

Elon Musk, SpaceX CEO, stated:

“highly confident that SpaceX will be launching Nvidia VR NLV72 AI computers in space”

Jensen Huang, Nvidia CEO, stated:

“Space computing, the final frontier, has arrived.”

Bret Johnsen, SpaceX CFO, noted that the enterprise’s AI hosting agreement provided leadership with:

“even more conviction”

At the time of publication, a direct comparison of the two entities continues to favor Nvidia regarding consistent financial performance, yet SpaceX equity has recently garnered renewed endorsement from Bank of America following the orbital launch of Starship. Nvidia’s prominence among artificial intelligence companies remains secure for the time being, but the potential realization of SpaceX’s value appears increasingly tangible.

?Frequently Asked Questions

01What is the market cap of Nvidia and SpaceX?

Nvidia’s market capitalization is near $5.2 trillion, while SpaceX carries a valuation near $2 trillion.

02What was Bank of America’s price target for SpaceX?

Bank of America analyst Ronald Epstein established a $235 price target for SpaceX, representing an upside of approximately 60% over its reference price.

03What recent technical milestone did SpaceX achieve?

On September 28, SpaceX successfully sent Starship into orbit, deployed 26 Starlink V3 satellites, and landed the Super Heavy booster.

04What AI cloud firm did Nvidia invest in?

Nvidia joined a $668 million funding round for GMI Cloud alongside South Korean backers like KB Investment.