Nvidia Stock Rises After SpaceX Announces Exclusive Partnership

Nvidia Stock Rises After SpaceX Announces Exclusive AI Hardware Partnership

By James Seidel | CC News

Shares of Nvidia (NASDAQ: NVDA) climbed more than 3% Wednesday after SpaceX announced it will exclusively use Nvidia’s AI chips for its future artificial intelligence infrastructure, including the company’s planned Starmind orbital computing program.

During SpaceX’s first earnings call as a public company, CEO Elon Musk said the company selected Nvidia’s next-generation Vera Rubin architecture to power its advanced AI systems, calling it the leading hardware available for demanding artificial intelligence workloads.

The announcement is viewed as another major win for Nvidia, which continues to dominate the rapidly expanding AI chip market. Analysts at JPMorgan said SpaceX alone could account for a significant share of Nvidia’s GPU shipments in 2027, underscoring the enormous demand for the company’s technology.

Further boosting investor confidence, Nvidia’s primary manufacturing partner, Foxconn (Hon Hai Precision Industry), reported a 54.2% year-over-year increase in monthly sales, reflecting continued strength across the AI supply chain.

AMD Shares Fall

The news also weighed heavily on Nvidia competitor Advanced Micro Devices (NASDAQ: AMD).

AMD shares dropped more than 6% after the company issued a weaker-than-expected revenue forecast despite reporting quarterly earnings that topped Wall Street estimates. Investors also reacted negatively to AMD’s plans for increased capital spending.

The contrasting performances highlighted Nvidia’s growing lead in the AI infrastructure market as demand for high-performance computing continues to accelerate.

Nvidia Near Record High

Following Wednesday’s gains, Nvidia shares traded around $221, putting the stock within reach of its 52-week high of approximately $236.

The stock has risen roughly 16% year-to-date, continuing a remarkable multi-year run fueled by explosive demand for AI chips used in data centers, cloud computing, robotics, autonomous systems, and now aerospace applications.

An investor who purchased $1,000 of Nvidia stock five years ago would now have an investment worth more than $10,600, illustrating the company’s extraordinary growth during the AI boom.

Investors will continue watching Nvidia’s expanding partnerships and upcoming earnings for signs that demand for AI infrastructure remains as strong as many analysts expect.

Nvidia’s meteoric rise has made it one of the most valuable companies in the world, driven by an insatiable demand for the graphics processors that power artificial intelligence. Once known primarily for gaming chips, Nvidia has become the backbone of the AI revolution, supplying the hardware behind everything from ChatGPT to autonomous vehicles and massive cloud data centers.

That dominance received another major boost this week as newly public SpaceX announced it will exclusively use Nvidia’s next-generation AI hardware for its future computing infrastructure, including its ambitious Starmind orbital computing program. The partnership ties together two of the world’s most influential technology companies and signals that AI’s expansion is reaching beyond Earth-based data centers into space, while SpaceX’s long-awaited public market debut immediately positioned the company as one of the most closely watched stocks on Wall Street.

Disclaimer: This article is provided for informational and news reporting purposes only and should not be considered financial, investment, or trading advice. CC News does not recommend buying or selling any security. Stock prices can be volatile, and past performance is not indicative of future results. Readers should conduct their own research and consult a licensed financial advisor before making any investment decisions.

About the Author

James Seidel

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About the CC News Network James Seidel: Publisher, Award Winning Journalist, Author. Investigator, Podcaster, Talk Show Host, and Music Producer. The CC News Network is a distinguished media company in the world of South Carolina News, Weather, Sports and True Crime. At the beginning, James Seidel was only known as Crime and Cask and well known for his relentless pursuit of truth and justice in the Alex Murdaugh trial. As a journalist, author, investigator, radio talk show host, and record producer he has made significant contributions to uncovering some of the most complex and high-profile criminal cases of our time.

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