Nvidia Dumps Billions into Troubled SpaceX Amid AI Capex Frenzy
Nvidia's $63 billion investment portfolio is known for its savvy picks in the tech industry. The latest addition to this impressive list is Elon Musk's Space Exploration Technologies (SpaceX), which has become Nvidia's second-largest public holding.
This change came about after SpaceX went public on June 12 with an initial public offering (IPO) that was Wall Street's largest ever. As a result, Nvidia had to report its stake in the company through its quarterly 13F filing. This position consists of 122,764,805 shares of SpaceX, valued at nearly $21 billion at the end of June.
However, despite initial excitement surrounding SpaceX's IPO, the company is now facing a multitude of challenges. Despite a significant increase in second-quarter sales of 92%, SpaceX reported a substantial loss and eye-popping capital expenditures (capex) for its data center segment.