If I Had a Choice to Invest $10,000 in SpaceX or Nvidia, Here's What I Would Do
2026-10-11 17:18
•Jennifer Saibil •The Motley Fool
••••••• •••• Axe Cap view
Nvidia over SpaceX for now in tech bets
Despite SpaceX’s growth, Nvidia offers a clearer path to profits and a fairer price on the JSE’s radar.
SpaceX’s leap in Starlink subscribers and near 100% revenue growth is undeniably impressive, waving the flag for tomorrow’s tech frontier. But at nearly 70 times sales, it’s priced for perfection and then some. That’s a tough pill when you consider that no public data yet confirms profitability or sustained margins. Nvidia, on the other hand, doubles as a profit powerhouse and growth story. Its $96 billion revenue run, coupled with 75% gross margins, underscores a business that’s not just growing but winning in a very competitive AI chip space. For JSE investors, the link is indirect but clear: a weaker rand (USD/ZAR) can amplify gains in offshore tech exposure through counters like Naspers or Prosus, which hold big stakes in global tech trends including AI. If Nvidia stumbles, the ripple on rand and SA tech proxies will hurt. Still, Nvidia’s valuation of about 30 times earnings feels more anchored in reality. Investors should watch for potential overextension in the AI hype train as the main risk here—should AI growth slow, Nvidia's shine could dim quickly. But for now, steer your foreign tech bets toward the better proven player. this is just our opinion and not financial advice
Buy Nvidia exposure through offshore funds or SA proxies like Naspers/Prosus cautiously; avoid SpaceX until it proves profitability or trades cheaper.
- NVDA
- USD/ZAR
- Naspers
- AI sector hype fading
- Rand volatility impacting offshore tech returns
7/10
In a comparison between SpaceX and Nvidia for a $10,000 investment, the author recommends Nvidia despite SpaceX's impressive growth and innovative opportunities. SpaceX shows strong fundamentals with 92% revenue growth and expanding Starlink operations, but trades at an expensive 69x sales valuation. Nvidia, with proven profitability, accelerating revenue (doubled to $96.2B), and a more attractive 30x earnings multiple, is positioned as the better buy given its central role in AI infrastructure development.
Our take is based on reporting first published by The Motley Fool.