Forget SpaceX: These 3 AI Stocks Are the Smarter Play Right Now

Key Concepts

• Terrestrial AI Build-out: The massive expansion of data center infrastructure on Earth to support AI workloads.
• Orbital Economy: The emerging sector of space-based infrastructure, including satellite-based computing and intelligence.
• Data Center Building Block Solutions (DCBBS): An integrated approach to infrastructure that bundles hardware, cooling, networking, and management software.
• Edge Computing (Space-based): Processing data directly on satellites to reduce latency and bandwidth costs.
• High-Revisit Imagery: Satellite technology that captures images of the same location frequently, creating a baseline for behavioral pattern recognition.
• Defense Procurement Policy: The strategic requirement for governments to avoid single-vendor monopolies in tactical intelligence.

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1. Super Micro Computer (Ticker: SMCI)

Main Topic: AI Hardware Infrastructure

• Key Points: Despite recent market volatility and concerns over a $7 billion capital raise (equity and debt), the company has secured approximately $39 billion in new AI orders.
• Valuation: The stock is currently trading at a trailing price-to-sales ratio of under 1x, which the speakers characterize as a "gift" given the hyper-growth demand.
• Technical Advantage: Supermicro specializes in liquid-cooled server infrastructure, which is essential for high-density GPU deployments like xAI’s "Colossus 1" supercomputer.
• Strategic Shift: The company is moving from a transactional hardware vendor to a full-stack partner via its DCBBS model. CEO Charles expects this segment to contribute over 25% of total profit within a few years, with gross margins exceeding 20%.
• Risk: Margin compression due to intense competition from Dell, HPE, and Lenovo, and the risk of GPU allocation shifts by Nvidia.

2. Nvidia (Ticker: NVDA)

Main Topic: AI Compute and Orbital Expansion

• Key Points: Nvidia’s data center revenue grew 92% year-over-year to $75 billion, with networking revenue up 200%.
• Space Application: Nvidia is pioneering space-based inferencing. The "Space One Vera Rubin" module offers 25x more AI compute than the H100 for orbital environments.
• Strategic Rationale: Moving AI workloads to orbit solves terrestrial constraints like power grid limitations, water cooling shortages, and land availability. Furthermore, processing data on-satellite reduces the need to beam massive amounts of raw data back to Earth, solving critical bandwidth and latency issues.
• Valuation: Trading at approximately 23x forward earnings, which the speakers view as an exceptional valuation for a company with such dominant market positioning.

3. BlackSky Technology (Ticker: BKSY)

Main Topic: Predictive Intelligence and Software Layers

• Key Points: A small-cap company that provides real-time predictive intelligence via its Spectra AI platform.
• Business Model: While they operate a satellite constellation, the true value lies in the software layer that turns raw imagery into actionable intelligence for defense and government clients.
• Financials: Q1 2026 revenue is projected at $21 million, with full-year guidance of $130–$150 million (30%+ growth). The company holds a $352 million backlog.
• Competitive Moat: BlackSky possesses years of proprietary training data and behavioral baselines. The speakers argue that even large prime contractors (e.g., Lockheed) cannot replicate this "head start" simply by spending capital, as the data requires years of high-revisit observation to accumulate.

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Synthesis and Conclusion

The speakers argue that investors should look past the immediate hype of the SpaceX IPO and focus on the "back-end infrastructure" companies that benefit from the broader AI and space ecosystem growth.

• Supermicro provides the physical backbone for terrestrial AI.
• Nvidia provides the compute power for both terrestrial and orbital applications.
• BlackSky provides the intelligence layer that makes satellite data useful.

The core argument is that these companies are not dependent on the success of any single space event; rather, they are positioned to capture value from the long-term trends of data center scaling, AI spend, and defense modernization. The "space angle" is presented as an optionality bonus rather than the sole driver of their investment thesis.