Key Takeaways
- Lynx Equity identifies Nvidia as a superior investment opportunity compared to SpaceX after its Nasdaq listing
- Expansion of xAI through Terafab and advanced AI infrastructure will boost Nvidia chip demand
- Google has secured a three-year GPU rental agreement with xAI involving approximately 110,000 Nvidia chips
- Storage and memory companies including Micron, Seagate, and Western Digital positioned as additional winners
- Lynx establishes $250 target for Nvidia; broader Wall Street consensus points to $311.41 average price target
The real beneficiary of SpaceX’s initial public offering might not be the rocket company itself — it could be Nvidia (NVDA). This surprising perspective comes from Lynx Equity, which released an analyst note Monday suggesting that Nvidia represents a more strategic investment opportunity than the newly public SpaceX.
Following SpaceX’s Nasdaq listing last week, which generated substantial investor interest, Lynx Equity is directing attention toward a different opportunity.
Nvidia currently trades near $204, positioning it well below Lynx’s $250 price objective. The investment firm contends that Nvidia’s valuation metrics are more attractive than SpaceX’s, while its business fundamentals appear “considerably more tangible.”
The investment thesis centers on xAI. According to Lynx, SpaceX’s market value is heavily linked to Elon Musk’s artificial intelligence venture, and as xAI expands operations — especially initiatives like Terafab — the computing requirements will surge dramatically.
This translates directly into increased demand for Nvidia’s chip technology.
Google’s GPU Partnership With xAI Strengthens Nvidia Outlook
Lynx presented compelling evidence: xAI maintains a three-year GPU leasing contract with Google providing access to approximately 110,000 Nvidia chips. This agreement creates a direct revenue stream for Nvidia’s business.
The research firm also observed that this arrangement helps contain Google Cloud Platform’s capital spending, which positively impacts Alphabet’s bottom line.
The infrastructure expansion extends beyond graphics processing units. Lynx anticipates that escalating AI infrastructure investments will benefit memory and storage manufacturers as well. Micron, SanDisk, Seagate, and Western Digital were identified as companies likely to gain.
Western Digital has experienced extraordinary growth — climbing more than 900% over the past twelve months. The stock currently changes hands at $562.92 with a $194 billion market capitalization. The company recently exceeded Q3 2026 earnings projections, delivering EPS of $2.72 versus the anticipated $2.36, while revenue reached $3.34 billion compared to the $3.23 billion forecast.
Semiconductor Equipment Manufacturers Also Stand to Benefit
Lynx’s analysis extended beyond chip designers. The firm identified semiconductor equipment providers as additional winners if chipmakers increase production capacity to satisfy AI-driven demand.
Lam Research, Applied Materials, ASML, and KLA all received mentions in the research note.
Intel also earned recognition. Lynx anticipates the company will profit from the expanding AI infrastructure landscape, alongside Nvidia.
Across Wall Street, Nvidia commands a Strong Buy consensus rating supported by 37 Buy recommendations, one Hold, and one Sell over the previous three months.
The average twelve-month price objective stands at $311.41, suggesting approximately 52% potential upside from present trading levels.
While Lynx’s $250 target falls below the Street consensus, the firm’s analysis focuses less on immediate price appreciation and more on identifying the superior risk-reward opportunity — Nvidia compared to a newly listed SpaceX carrying a valuation heavily dependent on projected future expansion.
Western Digital has also recently unveiled the integration of post-quantum cryptography technology into its Ultrastar UltraSMR hard disk drives, which are undergoing qualification processes with several hyperscale clients.
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