Key Highlights
- SpaceX confirmed exclusive adoption of Nvidia’s AI chip technology, highlighting Vera Rubin architecture as superior to alternatives
- Shares of Nvidia climbed 4.3% to reach $220.75 during morning trading hours after the news broke
- SpaceX CEO Elon Musk outlined plans for approximately 2 gigawatts of computational power by late 2026, expanding to 10 gigawatts in 2027
- Volta Infra, supported by Nvidia, secured a multi-year $10 billion AI cloud agreement with Anthropic for European data center construction using Nvidia technology
- Competitor AMD dropped 5% post-earnings, emphasizing Nvidia’s attractive forward P/E ratio of 19.4x compared to AMD’s 44x valuation
Shares of Nvidia experienced a 4.3% surge to $220.75 during early market hours following SpaceX’s declaration that it will exclusively utilize Nvidia’s AI chip ecosystem moving forward.
During a SpaceX earnings discussion, Elon Musk revealed the decision, describing the Vera Rubin architecture as “the best architecture” currently on the market. The company has chosen the Vera Rubin NVL72 rackscale configuration for its forthcoming Starmind satellite-based AI initiative.
SpaceX’s computational objectives are substantial. Musk indicated the organization anticipates approximately two gigawatts of processing power by 2026’s conclusion, potentially expanding to 10 gigawatts throughout 2027.
Additionally, SpaceX is developing orbital data center facilities utilizing Nvidia technology, circumventing the terrestrial limitations of land availability and energy supply that challenge ground-based operations. However, certain industry observers express doubt regarding the long-term financial viability of this strategy.
The Volta Infra Partnership with Anthropic
Simultaneously, Volta Infraāwhich has backing from Nvidiaāannounced a $10 billion multi-year agreement with Anthropic to establish AI data centers throughout Europe, exclusively powered by Nvidia chip technology.
These consecutive announcements solidify Nvidia‘s dominance in both orbital AI infrastructure and European cloud computing markets.
Nvidia currently maintains a forward price-to-earnings multiple of approximately 19.4 times, based on FactSet data. This represents a compelling valuation compared to AMD, which carries a forward earnings multiple of roughly 44 times.
AMD shares declined 5% Wednesday following quarterly results that exceeded analyst projections but disappointed investors after a robust rally earlier this year.
Implications for Nvidia’s AI Leadership
SpaceX’s exclusive partnership reinforces the narrative that Nvidia’s Vera Rubin platform and comprehensive software ecosystem are emerging as the industry standard for enterprise-scale AI infrastructure deployments.
The Anthropic agreement through Volta Infra introduces extended-term cloud commitments to Nvidia’s portfolio, aligning with the AI infrastructure expansion theme that market watchers have identified.
Nevertheless, cautionary perspectives persist. These agreements underscore dependency on a limited number of capital-intensive, large-scale clients and initiatives. Market analysts have identified potential challenges including project financing, energy infrastructure availability, and regulatory hurdles.
Furthermore, these partnerships don’t directly mitigate threats from hyperscale cloud providers developing proprietary silicon solutions, or intensifying competition from AMD and Intel pursuing similar enterprise contracts.
Over the past three years, Nvidia’s stock has delivered returns of 418.2%, with five-year gains reaching 1,005.1%. The shares were recently highlighted in Barron’s when trading near $226.
Nvidia is scheduled to release its quarterly earnings report in late August 2026.
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