SpaceX Just Got a Superchip — Buy These 5 Stocks Before It Launches

SpaceX is coming soon, but there are still so many questions for investors, mainly how to get in on all of the money that this company is bringing into the market. Joining us today to break it down and share five stocks investors should be looking at right now is Dylan Jovenet with Behind the Markets. Dylan, so glad to have you on the show. We have talked to you about robotics. We've talked to you about some really interesting and exciting upandcoming developments in the market, and this is the biggest one right now. Everyone is talking about SpaceX, but I think the question that people have, what is this company? What is it actually going to to bring into the market? >> That's a great question. Thank you for having me. And it's a timely question. You know, for most of its 24 year history, SpaceX, you know, made money by launching things into space. But in the past few years, the business has shifted a lot. And now a lot of their growth comes from Starlink, giving uh internet service, basically beaming internet to subscribers. So that's become a major major revenue driver and it's really driving their income and revenue and this is before Musk merged SpaceX with XAI. >> Yeah, this is really a Musk empire and I think that's what has everyone of course paying attention to this company. Let's talk about the financial impact. How big of a deal is this company going to be financially when it launches in the market? >> Well, we're talking about a$1.75 to2 trillion IPO, which would be the biggest in history. And you want to look at the business underneath that for the revenue and the and the net income the business actually creates. And SpaceX before the XAI acquisition was generating and I have some notes here 16 billion in revenue and about $8 billion in IBIDA. Uh which is great. It shows you they have very good gross margins. They have a remarkable business and very little competition. Numbers like that tell you basically uh he could charge what he wants for it. There's no other game in town. the government has to pay and customers have to pay whatever Elon Musk says. The caveat is this uh 8 billion in IBIDA on the SpaceX Starling side of the business. But he merged it with XAI which you know basically was acquired at a 250 billion valuation did 210 million in revenues and lost $9.5 billion. So basically it's almost a wash when you put them both together and the second one becomes a drag. But Musk actually has a plan as he always does for how he sees this actually unifying and working together to actually grow the company much much bigger than it is >> and that is absolutely what we are going to talk about today is what is powering the SpaceX launch. Everyone is talking about how to get on the SpaceX IPO early and I know that's what you and your team at Behind the Markets have covered extensively in your special reports on the Colossus launch. We have a special offer for our viewers today from Dylan and behind the markets if you want to scan the QR code or click the link in the description. You can access all of the the in-depth research Dylan and his team have done on this launch and how you can get a part of it. But we're going to talk about some of that today in this video. I'm excited that you are sharing about this Dylan with our viewers and that is just talking about what powers SpaceX. It's not like these these rockets are just launching themselves. What is going into them? That is where a lot of the real advancement is going right now. >> This is very very interesting. I love the launch of all the things that Musk has done. This is my favorite. You know, this is the coolest thing. I read the Walter Isacson biography and they talk about how he changed the launch business. You know, before Musk came with SpaceX, you know, the government would do, let's say, a 10-year billion dollar contract with Boeing, and Boeing would know they're getting their hundred million a year to launch, you know, so three rockets into space or whatever it is. And those rockets once they were launched, they were gone. They were not usable again. And what Musk did is he's launching these rockets into space. And he says to the government, "Don't give me a fixed contract. Pay me based on success. Pay me when I actually uh succeed in the mission." And he's able to do that because the key difference is he's able to take those rockets back down like full self-driving rockets and park them after. So they're reusable which really increases his profitability in doing that and that is all done of course with chips and software. Now just before we get into that I just want to say this is very interesting. Of the 59 total rockets launched into orbit so far this year 35 of them have been SpaceX's Falcon 9. It's over half of all orbiter launches. not a monopoly, but they are clearly the dominant position. 50% of that industry SpaceX owns. It's really staggering. It's almost a monopoly. And from everything that I've read, and I've been studying this quite a bit, nobody's even close to the technology. Even uh Bezos's Blue Origins, they just have they're not close. What he has done with software and chips has actually created self-driving rockets in a way. they can actually come back down and park themselves, which drives costs much lower and allows them to do this cheaper and faster than any other competition. It's it's it's amazing really. >> It really is. And I this is why so many investors are paying attention because it is almost in that not quite a monopoly territory, but clearly the dominant player in the field, but so far has not had that public access yet. But I think the thing that a lot of investors are missing is that chip piece that you mentioned. None of this happens. None of this technology happens without the chip that Elon himself is working to design and build for his own company. So I that is really what we're going to talk about in this video today and the five stocks that are benefiting from this super chip that Elon is creating for SpaceX and really all of his products. So let's talk about what this chip is exactly. >> Well, it's a it's called the AI5. Musk just uh Tessa came out with earnings and Musk had a conference call and you know there's a quiet period happening right now whenever you're doing a public offering as I learned on Wall Street is you have the mandatory quiet period basically you're told not to say too many things because you know you you it's called get interrupting with the public markets it can be seen as manipulation so he's got to keep a real quiet lit one of the things that I heard and that I actually read when I read the transcripts of the conference call is he has $25 billion geared towards capital expenditures they're really rebuilding that business and a Part of that is their uh AI5 chip. He plans on using these chips uh among all of his companies really to help increase the flexibility and what these kinds of uh entities like rockets or cars or robotics can actually do. And that actually speaks to the bigger shift happening underneath uh the water right now in this AI race. you know the the first part of it was chat GPT then we moved into the second phase frankly with uh openclaw really launched this agentic AI and robotics phase so we've moved away from the chat GPT moment now to the agentic AI and robotics moment and that's why Intel companies like Intel and all these chip makers these CPU makers have gone through the roof in the past month >> yeah the price action in this area has been insane to watch especially on companies the size of the companies we're about to talk about. Not all of these are huge, but they are all seeing huge moves right now because of the impact of companies just like SpaceX that are investing all of this money. Again, we're talking about a space story, but the real story behind the advancements happening in SpaceX is AI. None of this would happen without the AI and chip development. Uh, and so these two are very much the same story. Uh, they are tied together immensely. And let's just get right into this list. We we've talked a lot about prepping for what we are going to talk about, but I want to get into the first name. So, Elon is building his own chip. He's he's working towards this AI5. What is the first big company that directly benefits from the chip that he's manufacturing? >> Well, remember something. Elon and Nvidia and Intel and AMD, none of them manufacture chips. What they do is they design chips. You know, just imagine like an architect designing a house. The architects have not built. So they're architecting the chips. What they do is they send their designs to a company called TSM, Taiwan Semiconductor. They're the ones, one of the ones actually turning that design into a chip. So whenever we see uh the rise of chips, even more so, it's Taiwan Semiconductor that's actually making them. Taiwan Semiconductor wins. No matter who chips, who creates chips, they're just winning everywhere. You know, the Charlie Sheen, they're by winning, you know. uh they win here, they win there. You know, they're winning everywhere. So, uh you know, TSMC has talk about a dominant position in the market. TSMC has even a more dominant position in their market than uh SpaceX does in rockets. It's unbelievable. And you know, one thing that I think your viewers should understand, everybody should really understand this. The most important metric right now in chips is the GPU to CPU ratio. So in the very first beginning of chat GPT, the AI moment, it was all GPUs. For every eight GPUs sold by Nvidia, there was one CPU sold. But that has changed as we move to aentic AI. Uh AI that can do things for us. Back in the day, if I wanted data, if I wanted to get my metrics on my business, I'd go into Microsoft Sheets or Google Sheets, Microsoft Excel, and I look at the data and I pull it together. Now you can have an agent do that for you and present it to you every morning. It's like having your meal cooked and served to you instead of making it yourself. This is what Agentic AI is doing already for us and a lot of people. So as we rise to Agentic AI, it's not GPUs that control Aentic AI, it's CPUs. And as the CEO of Intel uh just said on the conference call, the ratio used to be 8:1. Now it's 4:1 and he expects it to reach par. For every one GPU sold, he expects there to be another CPU sold, which is astonishing. >> Yeah. What you just said about Intel is tremendous growth for this company. Oh yeah. >> This is the second stock we're talking about in the list today is Intel because this company has seen such tremendous growth, up over 130% in the last month. And a lot of it is from exactly that outlook that you just said that the CEO just shared about the demand for CPUs. So let's talk about Intel as a company a little bit. What sets Intel apart from the other chip makers out there? Uh talk about that differentiator a little bit more. >> It's interesting. Intel is like the Empire Strikes Back. You know, it's like their their return. They do CPUs better than anybody, you know? I mean, the world moved to GPUs, but they do CPUs. And the guy running the the company right now, the new CEO, he knows what he's doing. He's an engineer. So, you know, they talked about they try to get in C the foundry business, but they really seem to be moving to the higher foundry is a low margin business unless you do it at scale like TSMC, but they really seem to be moving now back into CPUs, designing and really producing these CPUs. Their business is humming. I mean, the the stock is getting revalued based on this wave towards Agentic AI. And I just listened to the, you know, MAG7 conference calls. Uh, I read the transcripts this week. Meta, Amazon, Google, Microsoft, they're all going to spend close to $200 billion. Well, Meta is about 140, but $200 billion on building out AI. And a lot of that is agentic AI, which means the demand for CPUs is going to keep going higher. Remember, the richest companies in the world are spending the biggest amounts of money in history for a few things. data, CPUs, GPUs, and storage, electricity. So, those are the things I mean, you know, that's where the action is. >> Yeah, absolutely. And we we are already seeing that in Intel's price, but I think in investors when you're looking at at uh Intel's stock right now and whether you should get in on this, it does feel a little bit like you're just chasing this explosive stock that could really burn you as an investor. So, I want to talk about that a little bit and get your thoughts on when you have a stock that's up 130% in a month. Is it a time to be looking at it or is the demand for the CPU growth so high that this is just the start of that parabolic rise for Intel? >> Well, Intel is a big big company and they have a few problems that they need to unwind. So, basically, in the short term, it stock sells off. I mean, you know, things don't go straight up, but I'm too old to think things go straight up. You know, it's just not the way it works. But in the long term, the the company has a massive mega trend to ride. in the short term. If you're thinking short term, maybe you sell half of your position and take your profits off the table. If you're thinking short term, but if you're thinking long term, just, you know, just, you know, it it's a revolution really. And I hate to say words like that because they're just they're just, you know, they're sound silly really, but how else would one describe what's happening as we move from AI to the agentic AI and robotic AI, which is a big driver for Must, >> right? We have a few more stocks to get to, but I do have another question on Intel because I think the CPU demand is it's a new story coming to the AI story just like last year, you know, just about 12 months ago when we started to see the memory story come in and then we saw stocks like SanDisk and Western Digital uh just go crazy. I mean they they went up over a,000% in a year and so people are wondering is is this the next story for Intel? Is this the start of Intel's story? Will it be similar to what we saw in those memory stocks? Yeah, there's a bottleneck. There's more demand than supply. So these guys, whether it's Intel or AMD, these guys were geared for certain amount. They were geared for an 8:1 GPU to CPU ratio. That's what their business was geared for. So all of a sudden, everybody's rushing over there saying, "We need more. We need more. We need more." When that happens, you're able to raise your prices, but you also have to raise production. But you should be able to raise your prices over your cost of production and maybe start to get some pricing power, which is what Nvidia has had. Remember we talked about SpaceX's gross margins at 50%, their EBID up. That tells you they can dictate prices. Nvidia, same thing. They're able to dictate prices. They raise prices so much to dissuade people from buying so much. You know what I mean? That price demand curve. So same thing uh could very I mean looks very likely to happen with Intel where Intel finally gets pricing power back. So massive orders pricing power that is a great story. It >> is a very good story and we have a few more really good stories to go. We have a smaller company that most investors aren't really looking at in this whole AI chip story and it's one that is going to directly benefit from the Space X super chip. So, we'll talk about that one last, but you've already mentioned two of the other stocks on the list, and we can't talk about one without talking about the others. So, stocks number three and four will kind of be a two for one, but we're talking about AMD and Nvidia. Why do they make your list as stocks to look at in this SpaceX launch story? >> Well, AMD will benefit, they do both. They'll benefit from the rise, the sudden rise of Aentic AI. They're going to benefit greatly from this. There's no doubt about that. Matter of fact, in Microsoft's call uh yesterday, uh they said that 90% of Fortune 500 companies are using and exploring using AI tools and their services. Agentic AI actually was the word they use. You you're all going to the same you're drinking from the same well. You know, AMD is part of that well. So AMD is a big part of it. So is Nvidia. AMD because their revenues are getting revalued higher. Intel because their revenues on CPU side are getting revalued higher. So much more demand. Nvidia just on valuation. Nvidia is trading cheap. The GPU story kind of sold off. They're waiting for a new narrative. They look like they're about to join the party. >> So many investors are so skeptical. They talk about the AI bubble. Everyone thinks Nvidia's had its day in the sun. This is over for this company. And yet you hear numbers like that or predictions of this massive company seeing 100% demand growth in the next year ahead. I the the growth story for Nvidia seems very far from over and it is interesting that the stock hasn't seen that giant jump in the last month as some of these numbers are coming out the way that AMD has. Um we talked about Intel up 130% in the last month. AMD is up almost 75% in the last month. That's a huge jump for AMD. What's behind that that short-term big jump for AMD? >> I am not an optimist by nature. I mean I look at you know we call them on on Wall Street security analysts. Basically, I'm an insecurity analyst. I look for everything that can go wrong with something before I get into it. So, for me to say this is a mega wave and to say we're not in a bubble or whatever it is. Uh, and you know, you have to you have to understand, I'm not somebody who's prone to crazy optimism. It's just not my nature when it comes to the stock market. I will tell you this, reading those uh transcripts, those earnings reports, those press releases from the MAG7, we may or may not be in an AI bubble or not. But I'll tell you one thing, it's not stopping until the Mag7 stops spending a trillion a year on this thing. As long as Microsoft is spending 200 billion, Amazon's spending 200 billion, Google's spending 200 billion, Meta spending 125. As long as that's still happening, AI bubble away. That is what is driving this massive bubble. They're selling to their corporate clients like Microsoft Azour, their cloud business or Amazon AWS. Their corporate clients can't get enough. They want to all identify their businesses and that creates push demand for Intel, AMD. It creates push demand for Nvidia. I mean, it just creates demand down the chain. It is actually starting to grip the Fortune 500 where the actual transformation is actually now really taking place. You know, Chad GPT when it came out, it was cute. Oh, it's like Google. It's like Google, but it's more intimate. Gives me great answers. And you know, then Claude, then Gemini. Oh, this is great. I could see how this is the helpful research tool, but to make it dance for you to serve at dinner for you in a work sense to prepare I want steak and I want broccoli on the side. It it's actually bringing you that in a business sense of the word. That's a whole different game. >> Yeah, we are absolutely in a different phase of the AI story. And I I love what you said that as long as they're spending money, as long as the Mega 7 is spending money, the AI bubble is far from over. And those are just the companies that we can see how much money they're spending. SpaceX not public yet. We're not seeing we're not seeing the dollar value of how much money this massive company is investing into this chip development and these companies and how much they're benefiting from that. We will soon. That IPO is supposedly coming yet this summer. So, it's going to have a huge impact. Again, we've got one more stock to cover here of a name that you haven't thought about in this SpaceX IPO and how much money SpaceX is investing into this chip story. So, we're going to get to that one last. I do want to share one more time that special offer for viewers today. If you love what Dylan has to say, you can very much tell he has done a deep dive into his research on SpaceX and the super chip development that this company is doing and the impact it's having all across the market. You can scan the QR code or click the link in the description to get that special offer from Dylan and his team at Behind the Markets and read their in-depth reports on the SpaceX story as well. All right, Dylan, let's get to that last stock to talk about. And again, this is one that is going to be the least familiar name on this list of stocks today. >> Well, okay, we talked about uh GPU, CPUs, that big massive semiconductor story. You know, when we talked about there are three phases to to making a chip. The first one is design and that's what Nvidia and AMD and Intel and uh Musk's new chip AI5 is going to do. They all design chips like an architect. They send them to a company like Taiwan Semiconductor, the dominant company, right? And they actually use very very specific equipment, very delicate equipment to make these really things you can't even see with the human eye, even with a microscope. When Taiwan semiconductor is done with them, they send them out to be packaged. And this is really interesting here. Packaging used to be a low margin business. A packager would get it and it's like packaging meat. You just stick a plastic thing around the chip and great on on you go. Now on to the drop ship sellers, onto the company, whatever. Right? It's just I just take it low margin business. you might as well be bagging groceries, low margins, two, three, 4%. But actually, the demand is pushing TSMC to change how they deliver these chips. So instead of sending the packager entire fully done chips, they're sending them chiplets, little pieces of the chip like Legos. And the packager now has to assemble them himself. So packaging now has become much more value add. the the the higher you move up a value chain, the more return higher returns on capital get, the more money you make for every dollar of economic revenue you do. So basically this packager now is moving up the chain. Now it needs sophisticated equipment to actually put these Legos together, these chiplets they call them. And that company is Amcor um you know AMKR, great little company. It's like the biggest story nobody's talking about. But you know, you've seen it here so far. you talked about a little bit, you know, first it's GPUs, oh my god, and then it's memory and then you see those stocks rocket up and then it's manufacturing and you see those stocks semiconductors now it's CPUs and you know it's like different waves whenever you see a hit which tells you you're in a very strong bull market and the story keeps moving wherever analysts perceive the next bottleneck. Well, this is uh the last bottleneck. >> Yeah, packaging and assembly might seem boring, but it's such a huge part of the process. None of these will work unless they're fully assembled and put together with this kind of packaging that MC Corore provides. So, it is clearly a bottleneck. It's it's going to see the same kind of demand and that is why we're seeing movement in the stock. But I do want to talk a little bit about this price action that we've seen just this week in Amcor. It had a huge rise up quite a bit. Right now, it's still up 65% in the last month, but in just the last few days, it's had a pullback. It's starting to pull back a little bit towards the end of this week. Why are we seeing some of that volatility in MCOR? >> Because people are not insane. You know, I mean, you know, stocks get revalued higher. And if look, I'm not a technical analyst. I I do business valuation. I actually read 10 10ks and I do math and all this other stuff. Basically, anybody want to do it at home, it's nothing more complicated than eighth grade algebra. But when you look at, you know, classical technical analysis theory, you know, if you know, something should go up and then give back about a third of the increase and form a base and consolidate. So, you know, this this is completely normal. But look, the tidal wave of demand from the Fortune 500 company to the Mag 7 pushing on them to get their cloud business, all this all the way to chip makers, etc. to semiconductor manufacturer, chip designers, semiconductor manufacturers, and packaging companies. Again, until the Mag 7 stops spending a trillion, the Fortune 500 stops spending all that money, this is where you want to be. This is where the action is. And as relates to Amcor, just to give you an idea of how well positioned these guys are. Famously, TSMC, Taiwan Semiconductor, just built this big factory, this modern day chip manufacturing uh capacity in Arizona. MCOR built their factory 7 miles down the road. So, the better TSMC does, the better they do. You know what I mean? The it's just it's a value. It's what we call a value chain, a chain of value. And along the lengths of that chain, every company wants to extract more value and move further down the chain where they get the highest returns on capital. >> Dylan, this has been such a great conversation and a really unique way to look at the SpaceX launch because again, if you think logically, SpaceX is not happening without the power of chips helping to operate all the AI behind SpaceX. So, Dylan, thank you again for the great stock list today. If you as an investor are interested in other ways to look at this SpaceX IPO and the impact and ripple effect it could have in the market, make sure to watch this video. We talked about a list of another five stocks that are set to benefit from all of the investment and attention happening with the SpaceX IPO story. You can watch that video