SpaceX's AI Opportunity vs. Soaring Capital Expenditures Raise Red Flags

SpaceX's AI business is one of its largest long-term opportunities. The company has built two Colossus data centers for developing and improving its own AI, including Grok, and renting them out to customers.

The potential market size for SpaceX's AI sales could reach $322 billion by 2030, according to Goldman Sachs estimates.

However, there is a red flag for investors: the company's capital expenditures have jumped over 300% in just one year, with most of that going towards AI.

SpaceX's shares are also trading at a premium price-to-sales ratio, which could be a warning sign for investors.