Key Highlights
- SpaceX revealed plans to use Nvidia AI processors exclusively, praising Vera Rubin as superior to competing architectures
- Shares of Nvidia climbed 4.3% to reach $220.75 during morning trading sessions
- Elon Musk outlined SpaceX’s goal of achieving approximately 2 gigawatts of computational power by late 2026, expanding to 10 gigawatts in 2027
- Volta Infra, supported by Nvidia, secured a $10 billion long-term agreement with Anthropic for European AI infrastructure utilizing Nvidia processors
- Competitor AMD dropped 5% post-earnings, underscoring Nvidia’s attractive forward P/E of 19.4x compared to AMD’s 44x multiple
Shares of Nvidia experienced a 4.3% uptick to $220.75 during early market hours following SpaceX’s declaration that it would utilize Nvidia’s AI processor ecosystem exclusively moving forward.
During a SpaceX financial briefing, Elon Musk disclosed the decision, describing Vera Rubin as “the best architecture” on the market. The aerospace company opted for the Vera Rubin NVL72 rackscale configuration for its forthcoming Starmind satellite-based artificial intelligence initiative.
SpaceX’s expansion objectives are substantial. According to Musk, the organization anticipates approximately two gigawatts of processing power by late 2026, with possibilities to expand to 10 gigawatts throughout 2027.
Additionally, the firm is developing space-based data centers utilizing Nvidia technology, circumventing the real estate and energy limitations confronting terrestrial facilities. However, certain market observers express doubts regarding the viability of this approach over the long term.
The Volta Infra-Anthropic Partnership
Simultaneously, Volta Infra, which counts Nvidia among its backers, announced a $10 billion multi-year agreement with Anthropic to establish AI computing facilities throughout Europe, entirely based on Nvidia technology.
These consecutive revelations strengthen Nvidia’s dominance in both orbital AI infrastructure and European cloud computing markets.
Nvidia currently commands a forward price-to-earnings multiple of approximately 19.4 times, per FactSet data. This valuation appears competitive against AMD, which carries a forward earnings multiple near 44 times.
AMD’s shares declined 5% midweek despite reporting quarterly results that exceeded analyst projections, as investors remained underwhelmed following the stock’s robust performance earlier in 2026.
Implications for Nvidia’s AI Leadership Position
SpaceX’s exclusive partnership validates the notion that Nvidia’s Vera Rubin platforms and integrated software ecosystem are emerging as the preferred option for enterprise-scale artificial intelligence deployments.
The Volta Infra-Anthropic agreement introduces extended-duration cloud infrastructure commitments, aligning with the AI factory framework that industry analysts have been monitoring at Nvidia.
Nevertheless, skeptical perspectives persist. These partnerships underscore dependence on a limited number of major, capital-intensive clients and initiatives. Market watchers have identified concerns around project funding, energy infrastructure, and compliance challenges within this segment.
Furthermore, these agreements don’t fully mitigate threats from cloud giants creating proprietary semiconductors, or competition from AMD and Intel pursuing similar opportunities.
Over a three-year period, Nvidia shares have delivered 418.2% returns, with five-year gains reaching 1,005.1%. The equity was recently featured as a Barron’s recommendation when trading near $226.
Nvidia is scheduled to release its quarterly financial results in late August 2026.
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