What Do SpaceX, AMD, and Palantir Have in Common?

Space Exploration Technologies (NASDAQ: SPCX), AMD (NASDAQ: AMD), and Palantir Technologies (NASDAQ: PLTR) whitethorn look similar an unusual grouping of companies. But I person a bully crushed to see them together: They're each incredibly overvalued.

While that whitethorn dependable similar a shocking statement, aft digging into each stock, that's the reality, and investors sitting connected them whitethorn privation to see swapping them retired of their portfolios for immoderate much reasonably valued counterparts successful their industries.

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So, conscionable however pricey are they? Let's instrumentality a look.

SpaceX

Although SpaceX conscionable went nationalist a fewer weeks ago, I deliberation it's 1 of the astir overvalued stocks connected the market. But that's lone if you worth the institution based connected what it has already done.

The bulk of SpaceX investors are buying into the banal due to the fact that of what it could execute nether Elon Musk's leadership. That's a just concern thesis, and it's what has allowed Tesla to stay 1 of the largest companies successful the satellite contempt its concern struggles implicit the past fewer quarters. If that's your angle, I'm not going to argue, but it doesn't change the information that SpaceX's concern arsenic it stands present does not warrant the company's valuation.

SpaceX hasn't reported net results arsenic a nationalist institution yet, truthful the lone accusation investors person to spell connected is from its IPO presentation. According to that, successful 2025, SpaceX generated $18.7 cardinal successful gross and reported antagonistic nett income. So if we worth the institution utilizing 2025 sales, that would terms SpaceX astatine 92 times sales.

Even if SpaceX could drawback its fingers and go instantly profitable with a 45% nett borderline (its stated semipermanent goal), that would worth the banal astatine 204 times earnings. That's an incredibly costly stock, and with 2025 gross maturation coming successful astatine lone 33%, those numbers don't jibe.

That's not to accidental SpaceX cannot flooded this with aboriginal growth, but adjacent then, a batch of hoped-for maturation is already priced into the stock, truthful I'm avoiding it.

AMD

AMD banal has risen by astir 150% truthful acold successful 2026. While immoderate of that summation was earned, the remainder of it is simply a existent head-scratcher.

AMD is perpetually compared to Nvidia, arsenic these 2 vie against each different successful galore merchandise lines, but the astir important arena for some close present is the information halfway market. Nvidia's information halfway part is acold larger and increasing overmuch faster than AMD's, which makes it unusual that AMD is present valued astatine specified a premium to Nvidia.