Key Takeaways
- Lynx Equity positions Nvidia as a superior investment option compared to SpaceX after its public market entry
- xAI’s scaling operations through Terafab and expanded AI infrastructure will boost Nvidia chip demand
- A three-year GPU rental agreement between xAI and Google encompasses approximately 110,000 Nvidia processors
- Storage and memory companies including Micron, Seagate, and Western Digital identified as additional beneficiaries
- Lynx establishes $250 price objective for Nvidia; Wall Street’s average target reaches $311.41
Following SpaceX’s recent market debut, an unexpected winner has emerged — and it’s not the rocket company itself. According to a Monday research note from Lynx Equity, Nvidia (NVDA) represents a more compelling investment opportunity than directly buying into SpaceX shares.
While SpaceX captured significant investor attention with its Nasdaq listing last week, Lynx Equity is directing market participants toward an alternative play.
Currently trading near $204, Nvidia carries what Lynx describes as a more attractive valuation multiple compared to SpaceX, paired with business fundamentals that are “considerably more tangible” according to the firm’s assessment.
The investment thesis centers on xAI’s trajectory. Lynx contends that SpaceX’s market value is intrinsically linked to Elon Musk’s artificial intelligence venture, and as xAI expands its operations — especially through initiatives like the Terafab project — computing requirements will surge dramatically.
This translates directly into increased demand for Nvidia’s semiconductor products.
Google GPU Partnership Strengthens Nvidia Revenue Visibility
Lynx emphasized a significant contractual arrangement: xAI maintains a three-year GPU rental partnership with Google providing access to approximately 110,000 Nvidia processors. This agreement creates a direct revenue channel for Nvidia’s business.
The firm also observed that this structure helps constrain Google Cloud Platform’s capital expenditure requirements, thereby supporting Alphabet’s bottom line.
The infrastructure expansion extends beyond processing units alone. Lynx anticipates that escalating AI infrastructure investment will create tailwinds for memory and storage manufacturers. Companies like Micron, SanDisk, Seagate, and Western Digital were identified as positioned to capitalize.
Western Digital has experienced extraordinary momentum — surging more than 900% over the trailing twelve months. Shares currently trade at $562.92, giving the company a $194 billion market capitalization. The firm recently exceeded Q3 2026 earnings projections, delivering EPS of $2.72 versus the anticipated $2.36, while revenue of $3.34 billion surpassed the $3.23 billion consensus.
Semiconductor Equipment Manufacturers on Radar
Lynx’s analysis extended to the semiconductor manufacturing supply chain. The research firm highlighted equipment manufacturers as potential winners should chipmakers accelerate production capacity to satisfy AI-driven demand.
Lam Research, Applied Materials, ASML, and KLA received specific mentions in the research note.
Intel also featured in the analysis. Lynx views the company as another beneficiary of the expanding AI infrastructure landscape, complementing Nvidia’s position.
Across Wall Street, Nvidia maintains a Strong Buy consensus rating derived from 37 Buy recommendations, one Hold rating, and a single Sell rating compiled over the most recent three-month period.
The consensus 12-month price objective stands at $311.41, suggesting approximately 52% appreciation potential from present valuation levels.
While Lynx’s $250 target falls below the Street consensus, the firm’s investment case emphasizes risk-adjusted returns — arguing Nvidia presents superior value compared to a newly public SpaceX carrying a valuation heavily dependent on projected future expansion.
Separately, Western Digital recently revealed the incorporation of post-quantum cryptographic technology into its Ultrastar UltraSMR hard disk drive lineup, currently undergoing qualification procedures with several hyperscale clients.
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