In time O(n) you can use O(n) cells on a tape, but there are O(2^n) possible configurations of symbols on a tape of length n (for an alphabet with 2 symbols), so you can do so much more with n space than with n time.
If intermediate results are entirely uncorrelated, with no overlap in the work at all, that would not hold - space will not help you. Edit: This kind of problem is very rare. Think of a cache with 0 percent hit rate - almost never happens.
And you can't really do it the other way around (at least not in current computing terms / concepts): you cannot use a single unit of time as a standin / proxy for hundreds of cells, since we don't quite have infinitely-broad SIMD architectures.
Expensive calculation, cheap storage → caching results helps.
Limited bandwidth / 'expensive' storage, simple calculation (see: today's hyper-fast CPU+L1 cache combo's) → better to re-compute some things on the fly as needed.
I suspect there's a lot of existing software (components) out there designed along the "save CPU cycles, burn storage" path, where in modern reality a "save storage, CPU cycles are cheap" would be more effective. CPU speeds have grown way way faster than main memory bandwidth (or even size?) over the last decades.
For a datacenter, supercomputer, embedded system, PC or some end-user's phone, the metrics will be different. But same principle applies.