The first thing to say is that nobody knows what the stock market will do next. If anybody says they know, approach them with extreme caution. When it comes to the future, we’re all in the dark.
Things certainly look shaky today. The artificial intelligence (AI) revolution has upped the ante. Goldman Sachs estimates AI infrastructure capex could hit $765bn this year. That’s a mind-boggling sum and requires mind-boggling returns. As yet, we don’t know if AI ‘hyperscalers’ will make them.
US valuations are also dizzyingly high, while the Iran war, oil prices, inflation, interest rates and spiralling government debt all add to the uncertainty.
Throw in climate and geopolitical concerns, and the only surprise is that we haven’t had a crash yet. But with markets near all-time highs, any investor who sold up and ran for the hills has missed some mighty gains. So what do we do?
Can the AI boom power markets higher?
Selling ahead of a crash that may never happen is madness. If AI proves truly transformative, investors will miss out on something special. It all depends on your personal timeframe. Nobody should invest in shares if they’re going to need the money in the next couple of years. If you’re in that position, consider reducing your exposure. My timeframe is longer. I’m sticking around.
I’ve banked a few profits, giving me ammunition just in case we do get a crash. But I won’t hang around for long. I’m already hunting for targets.
To my surprise, I’m increasingly drawn to Elon Musk’s Space Exploration Technologies Corporation, or SpaceX (NASDAQ: SPCX). I shunned its IPO expecting wild swings, and so it’s proved. But with the shares plunging to around $139 today, just above their $135 launch price, I’m beginning to think this could be a good price to enter.
SpaceX is also throwing huge sums at AI infrastructure. First-half capex across the group totalled $28.5bn. It generated $3.5bn of operating cash flow. That left free cash flow $25bn in the red. This is supremely high risk. If we get a broader stock market crash, SpaceX could come hurtling down.
Why am I tempted by SpaceX shares?
At the same time, its AI business is making progress, with Q2 revenue jumping 247% to $2.56bn. Overall group revenue soared 92% to $7.8bn, while the net loss narrowed from $1bn in Q2 2025 to $541m.
Obviously, it’s incredibly high-risk and anything could go wrong. We may also see another wave of selling as further SpaceX investor lock-ups expire. I’m still tempted but won’t go all in. Instead, I’ll start feeding small sums into SpaceX, taking advantage of any dips. And if we do get a crash, I’ll take advantage of that too.
I reiterate, buying SpaceX is high-risk. Only those who understand the risks and can stomach the potential losses should consider it. There are plenty of solid FTSE 100 stocks trading at much lower valuations, with much less risk and generous dividends too. They make up the majority of my portfolio, and it will stay that way. If the market does crash, I’ll buy more of them too.
Should you invest £5,000 in SpaceX right now?
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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if SpaceX made the list?
Harvey Jones does not hold any positions in the companies mentioned.
This story originally appeared on Motley Fool
