SpaceX Earnings Call Yields Surprising Winners for Nvidia and SK Hynix

SpaceX's first earnings call was highly anticipated and had some non-obvious winners. One of them is Nvidia, which just announced that it will be designing the compute payload for SpaceX's Starmind AI satellite with SpaceX.

The satellite, set to launch next year, will use Nvidia's graphics processing units (GPUs) and central processing units (CPUs). Musk said that the Vera Rubin architecture is the best choice and that Nvidia has the best AI computer. As a result of this partnership, SpaceX declared that it will exclusively use Nvidia's chips going forward.

This news is positive for Nvidia, which already spent $15.8 billion on AI infrastructure capital expenditure in the second quarter alone. With its stock trading at a forward price-to-earnings (P/E) ratio of just 17 times fiscal 2028 analyst estimates, it's another reason to consider buying this AI stock leader.

Musk also discussed memory output during the call, saying that it's currently increasing by around 20% per year. However, demand is rising at a rate of 200% or more annually, leading to a supply shortage and price increases in DRAM, a dynamic random-access memory market dominated by SK Hynix, Micron, and Samsung.

SK Hynix stands to benefit the most from this trend due to its status as the main high-bandwidth memory (HBM) provider to Nvidia. The company also recently signed a massive multiyear deal worth $500 billion with Nvidia for next-generation memory supply and co-development.