Musk Gives Nvidia Major Boost with Exclusive Partnership Announcement
Nvidia's stock received a boost after CEO Elon Musk praised the company's products during SpaceX's recent earnings conference call.
Musk referred to Nvidia as making 'the best AI computer' and announced that SpaceX will exclusively use Nvidia's new Vera Rubin architecture by the end of the year.
This endorsement from SpaceX, which plans to launch data centers into space for computing, is a significant vote of confidence in Nvidia's products. However, it may not have a substantial impact on the company's business, as SpaceX spent about $28.5 billion on capital expenditures over the first six months of the year.
Nvidia's stock price isn't expensive relative to its growth, with a forward PE ratio of less than 24 times earnings. The market has priced the stock at a relatively low level, assuming Nvidia will lose share to competitors.