Nvidia Chosen by SpaceX for AI Infrastructure Dominance

Nvidia's AI infrastructure has been chosen by SpaceX for its superior Vera Rubin architecture.

This decision is seen as a nod to Nvidia's dominance in the market, with nearly 90% market share in data center accelerators. The company also has booming businesses in networking solutions and central processing units (CPUs).

SpaceX plans to invest heavily in AI infrastructure in the coming quarters, with a goal of reaching over 2 gigawatts of compute by the end of this year and several times higher by next year.

Nvidia's PEG ratio is at its lowest in five years, indicating that the stock is undervalued. Analysts predict Nvidia's earnings will increase at 45% annually over the next three years, making current valuations look cheap.