SpaceX Stock vs. Micron Stock: Buy One and Sell the Other, According to Certain Wall Street Analysts
2026-07-18 08:12
•Trevor Jennewine •The Motley Fool
••••• •••••• Axe Capital view
SpaceX vs Micron: Contrasting Bets from Wall Street
CFRA analysts recommend selling SpaceX on valuation and buying Micron on memory chip shortages and growth.
SpaceX captures the imagination with its reusable rocket tech and Starlink's 12 million users. But the stock trades at an eye-watering 88 times sales — among the highest in major US indexes—suggesting the market has priced in near-perfection. That leaves limited margin if small delays or competition emerge. On the other hand, Micron is riding a strong wave of supply shortages in memory chips, with prices for key components like DRAM and NAND soaring 90-110% per year. Micron reported a stunning 345% rise in revenue and over 1000% earnings growth recently, supported by long-term contracts that soften the cyclical tech risks. For South African investors, the contrast is clear in the USD/ZAR: a strong dollar supports Micron’s earnings in rand terms but could pressure heavily priced tech-like assets. For the JSE, closely watching currency swings is crucial before chasing speculative growth names similar to SpaceX. This view may be wrong if SpaceX manages sustained cost leadership and Starlink’s subscriber growth accelerates far beyond current expectations. this is just my opinion and not financial advice
I would avoid jumping into speculative tech plays like SpaceX given the valuation risk, but consider accumulating exposure to USD/ZAR and South African companies linked to global tech supply chains, reflecting Micron’s strong fundamentals. Keep a watch on the rand and adjust position sizing accordingly.
- USD/ZAR
- Micron
- SpaceX may surprise with faster growth and cost improvements
- Rand appreciation could hurt exporters and tech-linked stocks
6/10
CFRA analysts recommend selling SpaceX and buying Micron. SpaceX, despite dominating the space industry with reusable rocket technology and Starlink's 12 million subscribers, trades at an expensive 88x sales valuation with a sell target of $115 (12% downside). Micron benefits from severe memory chip supply shortages with DRAM and NAND prices up 90-110% annually, posting 345% revenue growth and 1,215% earnings surge, with a buy target of $1,500 (76% upside) and expected 115% annual sales growth through fiscal 2027.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Trevor Jennewine
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: SPCX, MU, GOOG, GOOGL, GOOGM, GOOGN
Sentiment: Mixed - CFRA analyst Keith Snyder has a sell rating with a $115 price target implying 12% downside. While SpaceX has strong competitive advantages in reusable rocket technology and dominates the space industry, the stock is overvalued at 88x sales—the most expensive in the S&P 500 and Nasdaq-100—leaving significant downside risk despite compelling growth prospects in connectivity and AI segments. CFRA analyst Angelo Zino has a buy rating with a $1,500 price target implying 76% upside. Micron is benefiting from severe memory chip supply shortages with DRAM and NAND prices surging 90-110% annually. The company posted exceptional Q3 results with 345% revenue growth and 1,215% earnings surge. Long-term supply agreements provide downside protection in a cyclical industry, and 115% annual sales growth is forecast through fiscal 2027.
Keywords: space industry, satellite internet, reusable rockets, memory chips, supply shortage, AI infrastructure, valuation, long-term supply agreements
Insights:
- SPCX: Negative: CFRA analyst Keith Snyder has a sell rating with a $115 price target implying 12% downside. While SpaceX has strong competitive advantages in reusable rocket technology and dominates the space industry, the stock is overvalued at 88x sales—the most expensive in the S&P 500 and Nasdaq-100—leaving significant downside risk despite compelling growth prospects in connectivity and AI segments.
- MU: Positive: CFRA analyst Angelo Zino has a buy rating with a $1,500 price target implying 76% upside. Micron is benefiting from severe memory chip supply shortages with DRAM and NAND prices surging 90-110% annually. The company posted exceptional Q3 results with 345% revenue growth and 1,215% earnings surge. Long-term supply agreements provide downside protection in a cyclical industry, and 115% annual sales growth is forecast through fiscal 2027.
- GOOG: Neutral: Mentioned as a customer of SpaceX's AI infrastructure services with a $920 million monthly rental agreement. This represents a positive business development for SpaceX but does not directly impact Alphabet's core business materially enough to warrant a strong sentiment rating.