tech
SpaceX's earnings are not helping its stock, but Nvidia is getting a boost
Hyperscalers' pain at the level of capex is a chipmaker's potential gain
TL;DR
- SpaceX's second-quarter capital expenditures of $18.4 billion exceeded estimates, leading to a drop in its shares.
- Nvidia's stock increased following Elon Musk's statement that Nvidia will be SpaceX's exclusive partner for AI infrastructure chips.
- Hyperscalers are experiencing investor pressure regarding AI spending, while chipmakers are benefiting financially.
- Musk's comments suggest potential for significant revenue for Nvidia, possibly substantiating previous revenue projections.
- Analysts estimate SpaceX's AI computing power expansion could translate to substantial revenue for Nvidia in 2027.
- Musk acknowledged his revenue projections for AI infrastructure are 'guesswork' and suggested SpaceX might not reach its full 20-gigawatt target.
- Questions remain regarding SpaceX's ability to finance and execute its AI infrastructure buildout, with potential involvement from Nvidia.
- SpaceX had previously indicated plans to use processors from both AMD and Nvidia, but has now decided to 'build exclusively on Nvidia'.
- AMD also saw an increase in capital expenditures in its second quarter.