SpaceX commits exclusively to Nvidia chips as AI infrastructure spending hits $18.4 billion

SpaceX's earnings are not helping its stock, but Nvidia is getting a boost

SpaceX tumbled after the rocket company unveiled its second-quarter results, though Nvidia emerged as a big winner. The company reported better-than-expected top and bottom-line figures, but second-quarter capital expenditures of $18.4 billion blew past estimates -- sending SpaceX shares down more than 7%. Nvidia, meanwhile, gained more than 3% as Elon Musk said the chipmaker would be SpaceX's "exclusive" chipmaking partner for its AI infrastructure buildout. The diverging stock moves reflect a hallmark in the artificial intelligence expansion: Hyperscalers are facing pressure from investors for their AI spending, while chipmakers get rewarded with more money coming their way and their shares rising. Analysts on Wednesday were excited that Musk's comments could substantiate Nvidia CEO Jensen Huang's blockbuster prediction from March that his company's flagship processors could generate $1 trillion in annual revenue through 2027. "If it proves credible, this is the kind of a spending intention that could finally get Jensen Huang to formally forecast that he has a line of sight to $1T in revenue well before 2030," Melius Research analyst Ben Reitzes wrote in a note to clients. NVDA 5D mountain NVDA 5 day. Chris Caso of Wolfe Research took Musk's comments to mean that SpaceX would add about 6 gigawatts of additional Nvidia computing power in 2027. At $35 billion per gigawatt, "this translates to close to $200 billion in potential revenue for NVDA in calendar year 2027," he wrote in a Wednesday note to clients. Nvidia reports fiscal second-quarter results on Aug 26. That's when CEO Jensen Huang could either confirm or walk back the scale of the projected demand. Musk's case for spending on that scale rests partly on economics he openly called guesswork on the earnings call. Asked by Morgan Stanley's Adam Jonas on Tuesday how much confidence he had in his line of sight, Musk said his "best guess" for the annual revenue each gigawatt of Nvidia's Rubin systems could generate was "somewhere between 30 and $50" billion, then added, "This is just a guess." He also conceded he doesn't expect to reach the 20-gigawatt target he floated, saying that if a quarter of the projects slip, SpaceX would likely land "close to 15." The question for Wall Street now is how quickly SpaceX can build out this infrastructure, how it will be financed, and whether that financing will involve more circular deals, potentially involving Nvidia itself? "This commentary will be all anyone talks about [on Wednesday], along with debates around Elon's ability to actually deliver it within a realistic timeframe, how it will be financed, and what role Nvidia may play in that financing," Reitzes at Melius wrote. On the Tuesday call, Musk said that SpaceX has decided to "build exclusively on Nvidia," a comment that Dauvin Peterson at 22V Research called "prolific" for its implications. Musk said in May that SpaceX would be using both AMD and Nvidia processors in its hardware buildout. AMD is down more than 7% following earnings, which showed an increase in capex to $808 million in the second quarter -- more than double the amount from the previous year. In a Tuesday note, Wells Fargo analysts said that SpaceX's AI division "was a highlighted hardware partner with AMD ... GPUs at AMD's Advancing AI 2025 event" in June.

Nvidia Stock Is on the Rise, After Elon Musk Says SpaceX Will 'Exclusively' Buy Its Chips

Get personalized, AI-powered answers built on 27+ years of trusted expertise. Nvidia shares are getting a lift after some encouraging comments from SpaceX and Tesla CEO Elon Musk. Musk said in SpaceX's (SPCX) first earnings call as a public company yesterday that it will only buy Nvidia (NVDA) chips for the foreseeable future to run its AI products. Nvidia shares were up 4% in recent trading, on track to log their fifth straight day of gains, while SpaceX shares dropped 12%. "We've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture," Musk said, per an AlphaSense transcript. "We think it's the best AI computer and we greatly value our close cooperation and partnership on many levels with Nvidia." When asked on the call about the amount of hardware SpaceX is securing to bring more AI computing capacity online over the next year, Musk said SpaceX anticipates receiving "a very significant percent" of Nvidia's GPUs next year. Musk's companies have used Nvidia hardware for years, and the CEO has at times rerouted chips reserved for Tesla (TSLA) to X and xAI, which are both now part of SpaceX. He has previously said that as long as Nvidia continues to make chips better than what his companies can produce internally, they will remain an Nvidia customer. That could change in the future, as Tesla and SpaceX are planning to build a jointly owned factory to make their own AI chips. With Wednesday's gains, Nvidia shares are up 18% since the start of the year, but still about 7% off their May highs.

Elon Musk's SpaceX Goes All-In On Nvidia. Jim Cramer Weighs In - NVIDIA (NASDAQ:NVDA), SpaceX (NASDAQ:SPC

QUICK SPARK: SpaceX Goes All-In on Nvidia. Jim Cramer Thinks That's All Investors Need to Know. "SpaceX has committed to using Nvidia GPUs exclusively because they are the best," Musk posted on X. And Cramer quickly reposted the comment with a five-word response: "and there it is." Cramer has been one of the most consistently bullish mainstream commentators on Nvidia over the past several years. JPMorgan Sees a Deepening SpaceX-Nvidia Partnership The exchange came just as JPMorgan highlighted Nvidia's growing role in SpaceX's AI expansion. The bank said SpaceX has decided to exclusively deploy Nvidia's Vera Rubin GPUs across its data centers and expects to receive a "very significant percentage" of Nvidia's GPU shipments in 2027. JPMorgan said the move supports SpaceX's plans to rapidly scale AI compute capacity from more than 2 gigawatts by the end of 2026 to between 5 and 10 gigawatts by the end of 2027. The firm added that SpaceX will also use Nvidia's Vera Rubin architecture in its planned Starmind AI satellites, further deepening the partnership. For Nvidia investors, Musk's endorsement wasn't just another vote of confidence -- it reinforced JPMorgan's view that one of AI's fastest-growing infrastructure companies is becoming one of the chipmaker's largest customers. Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Musk Praises Vera Rubin Platform on SpaceX Earnings Call, Nvidia Stock Climbs - NVIDIA (NASDAQ:NVDA)

* Nvidia stock is showing upward movement. Why is NVDA stock trading higher? SpaceX To Build Exclusively On Nvidia SpaceX reported its first quarterly results as a public company after the market close on Tuesday. On the conference call following the print, Musk suggested that Nvidia systems are superior to competitors. "Going forward, we have decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture. We think it's the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia," Musk said on the call. Musk added that SpaceX intends to end the year with over two gigawatts of compute and noted it will be "several times higher" by the end of 2027. Cumulative online compute may be closer to 10 gigawatts than five gigawatts at the end of next year, he said. The SpaceX CEO further stated the company plans to launch Nvidia's Vera Rubin NVL72 system, starting next year. "We think the design of the NVL72 VR computer is a much better design than is typical than, say, having a standard rack-style design, and so we expect to actually deploy this on the ground, as well as in orbit," Musk said. NVDA Shares Move Higher After Hours NVDA Price Action: Nvidia shares were up 1.67% in after-hours, trading at $215.47 at the time of publication on Tuesday, according to Benzinga Pro. Image created using artificial intelligence. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Space AI stocks to watch as NVIDIA and SpaceX target orbital compute By Investing.com

Investing.com -- The SpaceX StarMind AI1 announcement isn't just a space story -- it's a validation event for the entire NVIDIA Vera Rubin NVL72 ecosystem, with ripple effects spanning orbital compute, neocloud infrastructure, and space-grade hardware. The investment thesis splits cleanly into three tiers: direct hardware beneficiaries, Vera Rubin ecosystem plays already in production, and space infrastructure enablers who turn satellite compute into real-world intelligence. The Announcement, Decoded SpaceX (SPCX) is partnering with NVIDIA (NVDA) to design the StarMind AI1 satellite compute payload -- each satellite embedding NVIDIA Rubin GPUs + Vera CPUs for datacenter-class compute in orbit. This shifts the orbital compute paradigm: from passive relay to active AI inference in space. The downstream read-through spans four distinct beneficiary buckets. Tier 1 -- The Core Duo NVDA is the clearest read-through -- Rubin GPUs and Vera CPUs in every satellite means a recurring hardware moat, not a one-time deal. SpaceX, despite trading below its IPO price today with short sellers sitting on $15.5B in paper gains, becomes structurally more valuable as an AI factory in the sky rather than a launch provider. Tier 2 -- The Vera Rubin Ecosystem These are companies already operating the exact same hardware going into StarMind -- meaning they benefit from Vera Rubin production scale and credibility. NBIS is the stealth story here -- NVIDIA doesn't take 9.3% stakes casually. With Vera Rubin now validated on the ground and heading to orbit via StarMind, Nebius sits at the intersection of both deployments. CoreWeave's neocloud model is also directly validated -- Google's $195-$205B capex signals demand exceeding what hyperscalers can self-supply. Tier 3 -- Space Infrastructure Enablers Satellites producing AI inference need ground-based data routing, hardened memory, and connectivity. The Bull/Bear Read Bulls argue: Space investment hit $338B in H1 2026 -- up 1,436% YoY -- and StarMind transforms the sector from launch economics to AI-as-a-Service in orbit. NVIDIA gets a new hardware category; neocloud providers get demand validation; space infra plays get a long-duration growth runway. Bears note: SpaceX itself is below its IPO price with $15.5B in short interest. CRWV is still -17.6% over one year. Orbital compute introduces new physics-based constraints -- power budgets, radiation hardening, thermal management -- that ground-based Vera Rubin racks don't face. Execution risk is real. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Why is NVIDIA stock rising afterhours? By Investing.com

Investing.com -- NVIDIA stock rose more than 2% in after-hours trading on Tuesday after SpaceX unveiled a major partnership with the chipmaker during its inaugural quarterly earnings call. SpaceX named NVIDIA as the exclusive provider of AI computing hardware for its planned Starmind AI1 satellite constellation. Each satellite in the fleet will be equipped with NVIDIA's Rubin GPUs and Vera CPUs, delivering datacenter-class processing power from orbit. SpaceX CEO Elon Musk confirmed on the call that the company intends to build all of its AI infrastructure exclusively on NVIDIA platforms going forward. His comments also came after SpaceX outlined plans to aggressively increase its AI spending in the coming quarters. The announcement carried added weight because SpaceX had been conspicuously absent from NVIDIA's original space computing platform launch in March 2026, which named six initial partners. Adding SpaceX -- potentially one of the largest future consumers of NVIDIA GPUs -- as an exclusive customer signals a meaningful expansion of NVIDIA's addressable market well beyond terrestrial data centers. On the competitive front, AMD's after-hours decline following its own earnings -- despite a revenue beat -- highlighted a contrast with NVIDIA's momentum, as investors rewarded NVIDIA's concrete new partnership news. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.