It looks like the Space Exploration Technologies (NASDAQ:SPCX) enjoyed quite a successful lift-off on Friday’s session, with the broad markets both enjoying a big up day as the $2.1 trillion whale found a spot without causing mass profit-taking elsewhere.
Now that the SpaceX IPO is in the record books, questions linger as to whether it’s worth buying up shares of Elon Musk’s space empire at more than $160 per share, close to 20% higher than the $135 per-share start. Indeed, if there is a pullback at some point, investors might have a chance to get a price of admission that’s closer to (or maybe even a bit lower than) the IPO price.
For those who are fine with letting the shares settle for a while longer, there are numerous other names that might be worth careful consideration. Just because IPO day was positive for the broad market does not mean there hasn’t been a good amount of profit-taking in other parts of the sector.
Arguably, the past week has been quite vicious, and perhaps it’s the lead-up to the SpaceX IPO that was the worst for the other mega-cap titans that some might have lightened up on to make room for Elon Musk’s space and AI titan.
In this piece, we’ll look at some names that aren’t SpaceX that might offer less hype and perhaps more value:
Nvidia
There was much speculation about whether SpaceX would surge in value enough to become the world’s largest company. Though I wouldn’t rule out such a scenario over the next few years, I do think that the lead is for Nvidia‘s (NASDAQ:NVDA | NVDA Price Prediction) to keep for the time being. The stock is down around 13% after dragging in recent weeks. For those looking to rotate capital to a “new” kind of play, Nvidia is a natural name to hit the sell button on, especially now that momentum has trailed the likes of other AI plays.
Personally, I think Nvidia stock has suddenly become one of the best deep-value plays in the semiconductor industry. Sure, it’s the obvious play with a near-$5 trillion market cap. But just because it’s a giant doesn’t mean it can’t still keep getting big wins, perhaps en route to a $10 trillion market cap one day.
Even as hyperscalers and rivals look to build their own custom silicon, AI demand might be in a spot such that Nvidia can keep winning with GPUs and LPUs. If anything, custom silicon looks more like a “pressure release valve” than a replacement for Nvidia’s chips.
As Vera Rubin looks to experience explosive success, while RTX Spark (for agentics on the edge) hits the ground running, and the firm looks to the Feynmann era and beyond. As the firm also advances NVQLink and CUDA-Q, perhaps Nvidia might have the keys to genuinely useful quantum as the nascent tech collides with AI. Any way you look at it, Nvidia is going places.
Microsoft
Microsoft (NASDAQ:MSFT) looks like another forgotten high-quality AI play that’s hiding in plain sight in the mega-cap bargain bin. At just 23.2 times trailing price-to-earnings (P/E), the shares look undeniably cheap. After a painful June tumble of 15% that wiped out the stock’s recovery hopes, perhaps there’s an opportunity to get in while the market has turned against the enterprise AI giant.
Indeed, AI is moving fast, and Microsoft Copilot has some serious catching up to do. With the recent reveal of its MAI models, it will be interesting to see how Microsoft can advance its AI strategy.
BNP Paribas analysts seem to like what’s up ahead, with Copilot showing more capability in recent months. With a fairly high price target of $555.00 per share, 42% higher than Friday’s close, the stock might have room to run as investors step back from the hype and look to uncover market bargains that were left behind.
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