SpaceX vs. Micron: Which Is the Better Artificial Intelligence (AI) Stock to Own for the Next 5 Years?
- SPCX
- MU
- NVDA
Two of the more popular artificial intelligence (AI) stocks among investors right now are Space Exploration Technologies (NASDAQ: SPCX) and Micron Technology (NASDAQ: MU). However, one clearly stands out as the better buy over the next five years: SpaceX.
Let’s look at why I’d buy SpaceX and avoid Micron.
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SpaceX
If you want to invest in technological innovation and the future, SpaceX is one of your best options. Meanwhile, over the next five years, the company’s growth is likely to be driven mostly by leasing data center infrastructure, AI coding, and satellite internet.
SpaceX has some of the best economics in the entire data center space, getting returns on its AI infrastructure spending within one year through short-term leases. With demand for compute so constrained, the company has been renting out its excess compute capacity at huge prices. It has a $1.25 billion-per-month lease deal with Anthropic that runs through 2029, worth a total of $84.5 billion. The company is investing aggressively in AI infrastructure, and expects to have total capacity near 2 gigawatts at the end of 2026 and closer to 10 gigawatts than 5 gigawatts at the end of 2027.
In addition to its infrastructure-as-a-service business, the company has a huge opportunity with AI coding following its acquisition of Cursor. Morgan Stanley sees this as a $33 billion annual recurring revenue business by 2030, up from about $8 billion this year. The company’s Starlink satellite internet business is also growing quickly, is profitable, and generates recurring revenue. Meanwhile, any advancements with its Starship rocket and future ventures, like putting data centers in space, should get investors excited.
CEO Elon Musk has set a goal for SpaceX to reach $1 trillion in revenue in 2030. That’s well above the current $421.7 billion consensus, so if it gets anywhere close to Musk’s target, the stock will have significant upside over the next five years.
Micron Technology
One of the big three DRAM (dynamic random-access memory) makers, Micron, has been riding the memory supercycle to new heights. Soaring AI demand has led to surging memory prices, which have led to Micron’s revenue skyrocketing and gross margin ballooning. Both DRAM (73% of Micron’s revenue last quarter) and NAND (flash) are in short supply, which is driving up prices.
