Key Highlights
- SpaceX has committed to using Nvidia AI chips exclusively, declaring the Vera Rubin architecture superior to alternatives
- Shares of Nvidia climbed 4.3% to reach $220.75 during morning trading after the SpaceX news broke
- Elon Musk revealed SpaceX aims for approximately 2 gigawatts of computing power by late 2026, expanding to 10 gigawatts in 2027
- Volta Infra, backed by Nvidia, inked a $10 billion long-term agreement with Anthropic for European AI data center infrastructure powered by Nvidia technology
- Competitor AMD dropped 5% post-earnings, while Nvidia maintains a competitive forward P/E ratio of 19.4x compared to AMD’s 44x
Shares of Nvidia experienced a 4.3% surge to $220.75 during early market hours following SpaceX’s declaration that it would exclusively utilize Nvidia’s AI chip technology for future projects.
During a SpaceX earnings discussion, Elon Musk praised the Vera Rubin architecture as “the best architecture” currently on the market. For its forthcoming Starmind satellite AI initiative, SpaceX has chosen the Vera Rubin NVL72 rackscale system as its primary hardware platform.
SpaceX’s computing goals are substantial. According to Musk, the organization anticipates deploying approximately two gigawatts of computational power by late 2026, with projections to reach 10 gigawatts the following year.
Additionally, SpaceX is exploring orbital data center concepts utilizing Nvidia technology, which would circumvent traditional land acquisition and electrical grid limitations affecting terrestrial facilities. However, some market observers question the financial viability of such space-based infrastructure over time.
The Volta Infra-Anthropic Partnership
In a concurrent development, Volta Infra, which counts Nvidia among its backers, announced a $10 billion multi-year partnership with Anthropic focused on establishing AI data center operations throughout Europe, exclusively utilizing Nvidia processors.
These simultaneous announcements reinforce Nvidia’s dominance in both orbital AI computing systems and European cloud service infrastructure.
Nvidia currently maintains a forward price-to-earnings multiple of approximately 19.4, based on FactSet data. This represents an attractive valuation compared to AMD, which carries a forward earnings multiple near 44.
AMD shares declined 5% Wednesday despite reporting quarterly results that exceeded analyst projections, as investors took profits following a substantial rally earlier in 2026.
Implications for Nvidia’s AI Dominance
SpaceX’s exclusive partnership reinforces the perception that Nvidia’s Vera Rubin platform and comprehensive software ecosystem have become the preferred solution for enterprise-scale AI deployment.
The Volta Infra-Anthropic agreement introduces sustained cloud revenue streams to Nvidia’s portfolio, consistent with the AI infrastructure narrative that industry analysts have been monitoring.
Nevertheless, potential weaknesses persist. These agreements underscore reliance on a limited number of major, capital-intensive clients and initiatives. Market analysts have identified financing challenges, electrical grid capacity, and regulatory hurdles as ongoing concerns.
Furthermore, these partnerships don’t fully mitigate competitive threats from hyperscalers developing proprietary silicon, or from AMD and Intel pursuing similar high-value contracts.
Nvidia shares have delivered returns of 418.2% over a three-year period and an impressive 1,005.1% over five years. The stock received a favorable recommendation from Barron’s when shares were trading near $226.
Nvidia is scheduled to release its quarterly financial results later in August 2026.
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