SpaceX Chooses Nvidia Exclusively for AI Infrastructure

Nvidia's stock rose nearly 2% in early premarket trading on Wednesday, defying the broader market and chipmakers.

The gain comes after Elon Musk announced that SpaceX will exclusively use Nvidia chips for its AI infrastructure going forward. In a call with analysts, Musk praised the Vera Rubin architecture as 'the best AI computer' and expressed appreciation for Nvidia's partnership. This decision could have significant implications for the company, potentially reducing demand for AMD chips, which currently supply SpaceX.

Hon Hai Precision Industry Co., Nvidia's manufacturing partner, reported a 54.2% increase in July sales, indicating sustained demand for AI infrastructure buildout. The revenue jump to NT$946.5 billion ($29.3 billion) exceeded analysts' expectations of a 31.2% increase for the three-month period ending in September.

Retail sentiment for NVDA shifted from 'neutral' to 'bullish', with high message volume on Stocktwits. Traders expressed optimism about the rotation back into Nvidia, citing its year-to-date gain of 13%.