SpaceX Bets Big on Nvidia GPUs

Nvidia stock surged on Wednesday, rising as much as 4.9% after one of the biggest names in tech, SpaceX, announced plans to use Nvidia's GPUs exclusively for its AI systems.

During an earnings call, Elon Musk praised Nvidia's AI platform, saying it is 'the best architecture' and that he values the close cooperation and partnership between the two companies.

SpaceX expects to build over 2 gigawatts of compute capacity by the end of 2026, rising to 10 gigawatts by the end of 2027. This will require a significant supply of Nvidia's GPUs, which could boost the company's revenue and profits in the coming years.

Nvidia's dominance in AI chipmaking is expected to continue benefiting its shareholders, but investors should consider the company's potential growth prospects before making any investment decisions.