And if it’s real SpaceX (NASDAQ: SPCX) stock story isn’t about rockets at all – but how tight has the market become?

Over the last few years, apart from the Magnificent 7 and a miniature group of other campaigns, S&P500 brought relatively little profits. This concentration has become even more pronounced as investors continue to focus on an increasingly narrow group of winners.

At what point does this type of behavior stop being diversification and start to become something closer to a herd mentality?

SpaceX’s evolving narrative

Increasingly, a miniature number of shares are no longer just an investment in the core business. They become platforms for many overlapping topics at once.

SpaceX is no longer just about rockets and space exploration. The investment case is currently shaped by satellite communications, global connectivity and data infrastructure.

This change is more significant when viewed through artificial intelligence. The demand for artificial intelligence is growing, but the limitations are disappearing from the models themselves. Increasingly, it is about the infrastructure necessary to support them.

This includes data transmission, connectivity and distributed computing power.

In this context, the market is beginning to see SpaceX as part of a broader digital infrastructure ecosystem. This overlaps with artificial intelligence, cloud computing and enterprise software.

Recent strategic moves only confirm this opinion. They indicate a deeper exposure to software, automation and enterprise-oriented tools, in addition to the core aviation business.

The result is a broader investment story. It is also more powerful. However, this is based more on rising expectations.

When great technologies come before great returns

History suggests that some of the most powerful investment cycles are also the most hazardous for investors – not because technologies fail, but because expectations far outpace commercial reality.

In the 19th century, the railway boom transformed entire economies. The railway became one of the most essential infrastructure achievements in history, but the early wave of investment misallocated capital and significantly reduced profits because too much optimism was priced in too early.

A similar pattern emerged in the early days of radio and television. Companies like RCA became market darlings as investors tried to price in the impact of an entirely novel era of communications.

However, despite the long-term success of the technology itself, many early investors saw disappointing returns as competition intensified, and it took years for the profits to fully materialize.

Known pattern?

In many ways, today’s market structure appears more concentrated than in previous cycles.

Instead of spreading capital across many competing technologies, investors now focus on a relatively miniature group of companies.

There is a risk that these narratives drag out decades of potential growth into a much shorter valuation window.

Space exploration, satellite networks, and next-generation communications have the potential to prove transformative over time, but historically, commercial winners in such cycles have taken much longer to emerge than markets initially expected.

However, I continue to focus more on identifying companies that are currently generating forceful, recurring cash flow.

Is it worth investing £5,000 in Space Exploration Technologies Corp. now? – class A?

If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.

Mark believes there are 6 standout stocks that investors should consider buying right now. You want to check if Space Exploration Technologies Corp. – class A was on the list?

Andrew Mackie does not hold any position in the companies mentioned.