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Why SpaceX Stock Is Worth Buying and Holding for 10 Years
Key Points
SpaceX’s super intelligence segment, which includes its AI computing business and Grok, was its largest source of revenue last quarter at $7.6 billion.
The company is bringing roughly 200,000 Nvidia GB300 chips online per month and targets an additional 10 gigawatts of capacity in 2027.
At a market value near $2 trillion, the stock trades at 6 times Wall Street's 2028 revenue estimate.
Most investors know Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, for rockets, but the super intelligence segment (formerly called artificial intelligence) was its largest source of revenue last quarter. The stock is trading about 34% below its 52-week high of $225.64, as of Oct. 27, 2026. This dip presents a possible opportunity to buy a company whose AI business is scaling faster than its share price implies.
The segment, which includes AI computing and the Grok AI model, posted $7.6 billion of third-quarter revenue, up from $813 million a year earlier. Increasing scale in this business helped flip the year-ago quarter's operating loss of nearly $1.3 billion into a $431 million profit.
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The big opportunity here is that SpaceX is leveraging its hardware and engineering expertise to build data centers it rents to other companies. It's bringing roughly 200,000 Nvidia GB300 chips online per month and is aiming for an additional 10 gigawatts in service by the end of 2027. Ultimately, SpaceX claims it will move this infrastructure to space, with solar-powered satellite data centers launching as early as 2028.
The downside is that SpaceX is spending significant capital to enact these plans. Free cash flow was negative $35 billion through the first nine months of 2026. Still, that spending suggests opportunity.
SpaceX sizes the market for its AI infrastructure alone at about $2.4 trillion. Across all segments, CEO Elon Musk claims annual recurring revenue (ARR) could reach $500 billion to $1 trillion by the end of 2027.
That ARR target is large enough to support the stock's $2 trillion market cap. Wall Street expects revenue to reach $335 billion in 2028, still implying a fair forward price-to-sales multiple of 6.
SpaceX is on a sharp growth trajectory, making the stock more reasonably valued than it appears at first glance. With revenue scaling quickly, I believe the stock is worth buying today and holding for the next decade, as it could grow into a very large business.
John Ballard has positions in Nvidia and Space Exploration Technologies. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.