Musk Says SpaceX Will Use Only Nvidia Chips for AI, Shares Rise 3.4%
NVDA sits 35% above its 52-week low of $164.07.
Summary
Elon Musk stated on a SpaceX earnings call that the company will exclusively use Nvidia processors for its AI computing infrastructure, calling Nvidia the 'best AI computer.' This endorsement from a high-profile AI player reinforces Nvidia's dominance in the AI chip market. Nvidia shares rose 3.4% on the day, bucking a broader tech decline. The news follows Nvidia's record Q1 results and $80B buyback authorization in May, adding a new demand signal from a major private company. SpaceX's surging AI capex suggests significant future orders for Nvidia hardware.
At the time of this announcement, NVDA was trading at $220.70 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.3T. The 52-week trading range was $164.07 to $236.54. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Binance News.