Why Nvidia, Not Alphabet, Is the Best Artificial Intelligence (AI) Stock to Own for the Expected $1.75 Trillion SpaceX IPO

Why Nvidia, Not Alphabet, Is the Best Artificial Intelligence (AI) Stock to Own for the Expected $1.75 Trillion SpaceX IPO

https://www.aol.com/articles/why-nvidia-not-alphabet-best-012200459.html

Publish Date: 2026-04-28 21:38:00

Source Domain: www.aol.com

Here are 7 key points from the article:

• Alphabet’s Investment in SpaceX:

  • Alphabet (Google) invested $1 billion in SpaceX in 2015 at a valuation of $12 billion.
  • As of the anticipated 2026 SpaceX IPO, Alphabet’s 6% stake could generate a substantial financial gain of over $100 billion.
  • However, this gain primarily benefits Alphabet’s balance sheet with no direct operational benefit.

• Nvidia’s Space Exploration Tie-ins:

  • Nvidia develops specialized hardware for space exploration, including GPUs and platforms (IGX Thor and Jetson Orin) engineered for low-Earth orbit.
  • This technology facilitates AI inference, data processing, and other capabilities crucial for space missions.

• Integration with SpaceX:

  • Nvidia’s hardware already plays a significant role in SpaceX operations, including the training of AI models like Grok from the AI company xAI (also acquired by SpaceX).
  • Elon Musk has stated that SpaceX will continue ordering Nvidia chips, promising sustained hardware demand post-IPO.

• Future Growth Potential for Nvidia:

  • The SpaceX IPO, potentially raising $75 billion, could be redirected towards the hardware and AI infrastructure that Nvidia supplies.
  • This creates a path for significant growth leveraging the ripple effects beyond traditional markets like data centers.

• Contrasting Investment Perspectives:

  • While Alphabet is set for strong financial gains from the SpaceX IPO, the gains are primarily financial.
  • In contrast, Nvidia is already deeply connected with SpaceX infrastructure, offering an opportunity for sustainable, long-term growth.

• Motley Fool Stock Advisor Opinion:

  • The Motley Fool Stock Advisor team believes in a diversified approach, listing 10 stocks for potential future growth, which unfortunately did not include Nvidia at the time.
  • Historical examples show the team’s recommendations could produce significant returns, outperforming the market by a substantial margin.

• Advice on Buying Nvidia Stock:

  • The article does caution readers to consider broader investment strategies before committing to stocks like Nvidia.
  • The value of historically recommended stocks, like Netflix and itself in the past, underscores the potential and performance of Stock Advisor’s picks.