Nvidia Surges on SpaceX Deal and Growing AI Demand
Nvidia's stock surged 3.4% to $219.22 on its fifth consecutive day of gains, reaching a two-month high of $222.18 intraday and pushing its market cap to $5.35 trillion.
The catalyst for the rally came from Elon Musk's SpaceX earnings call, where he confirmed plans to exclusively use Nvidia GPUs and praised the upcoming Vera Rubin platform.
SpaceX aims to scale computing capacity from ~2 gigawatts by end-2026 to nearly 10 gigawatts in 2027 for Grok, AI tools, satellite computing, and orbital data centers. Analyst Chris Caso estimates this expansion could generate over $160 billion in potential incremental revenue for Nvidia.
The commitment reaffirms Nvidia's stickiness in the CUDA ecosystem and NVLink interconnect, and deployment efficiency when major AI clients make comprehensive performance decisions.