Key Points

• Nvidia, Broadcom, and TSMC all look far more attractive than SpaceX.

• There is a huge growth catalyst pushing these three higher.

Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, went public with a lot of fanfare. In the days following its initial public offering, that appeared to be justified, as the stock skyrocketed.

However, it has since crashed back to Earth and now trades for around $115. The reality is that the stock is trading at levels that aren't supported by its business financials, and there are several more-attractive stocks that investors should consider over SpaceX.

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Three that top my list are Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC), and Broadcom (NASDAQ: AVGO). They actually have business fundamentals that support their valuations, and each is growing faster than SpaceX.

SpaceX's valuation is stretched

First, let's look at valuations. As of this writing, SpaceX is about a $1.5 trillion company, while TSMC and Broadcom are slightly larger at $2.1 trillion and $1.8 trillion, respectively. Nvidia is substantially larger at a $5 trillion market cap, but it's still close enough that it's worth comparing.

We don't have any of SpaceX's trailing-12-month results, but we do have 2025 figures. That year, it generated $18.7 billion in revenue, growing 33%, and produced no net income. However, it aims to achieve a 45% net income margin when fully mature. If the company could snap its fingers and instantly achieve that, it would have net income of $8.4 billion.

Now, let's compare those figures to companies that are only slightly larger.

Despite SpaceX being in a similar valuation range with this trio, it's a long way off from generating the same level of profits and revenue. Its closest comparison, Broadcom, has generated more than four times more revenue during the past 12 months than SpaceX did in 2025. While that gap will close when we get SpaceX's trailing-12-month figure in its second-quarter results, it won't close that much.

And Broadcom has a major growth catalyst coming in 2027 with increased custom artificial-intelligence (AI) chip shipments that will cause its revenue to skyrocket next year. Flipping to TSMC and Nvidia, the former has nearly four times the revenue that SpaceX does in profits. Yet TSMC has only a 33% higher valuation. Something is off in that comparison, and it's not TSMC.

Finishing with Nvidia, it's already more than three times larger than SpaceX, but it generates well over 10 times as much revenue. This shows that SpaceX is a bit out of its league in the $1 trillion club, and these three are much better picks.

This trio has an ongoing major growth catalyst

All three of these stocks are heavily involved in the AI building boom. Nvidia makes the most popular computing chips with its graphics processing units (GPUs), and Broadcom is challenging it with custom AI chips. TSMC is a chip manufacturer that fabricates designs from companies like Nvidia and Broadcom, along with many others. As long as the AI boom is full steam ahead, these three will remain great investment options.

Wall Street analysts expect rapid growth from all three of these companies next year. With profit margins likely staying elevated, they will generate far more profits than SpaceX generates revenue. That's a huge distinction, and I think investors should be more focused on investing in companies that have proven profit streams rather than ones that could have profits years down the road.

Nvidia, TSMC, and Broadcom have a generational growth opportunity and are capitalizing on it. SpaceX hasn't quite reached its full-blown space economy aspirations, and there will be plenty of time to invest in it later. The time is now to invest in this trio.

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Keithen Drury has positions in Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.