"Only Nvidia": The statement by Elon Musk that caught the attention of SpaceX investors
Elon Musk's company released its first report as a public company and beat forecasts, but the spotlight was stolen by a statement from CEO and founder Elon Musk during the investor call regarding the company's AI infrastructure.
SpaceX recorded a historic night yesterday when it released its first financial report as a public company. The data was stronger than expected, but the real headline did not come from the numbers but from the words of Elon Musk in the investor call, where he declared that the company would build all its artificial intelligence operations exclusively on Nvidia systems.
The report came after a difficult period for the stock. Since the IPO on June 12, the space company has lost about 24% of its value, and from the peak recorded on the 16th of that month, it is already a drop of nearly 50% - a wipeout of about half a trillion dollars from its value. On the day preceding the report, the stock closed with an increase of more than 9% at a level of 125 dollars, but in after-hours trading, it already weakened by about 7%.
In terms of results, the company beat expectations in almost every parameter. Quarterly revenue totaled 7.88 billion dollars compared to a consensus of 6.93 billion, and the loss per share stood at only 9 cents against a forecast of a loss double that and more.
The surprise was recorded in all three sectors of activity, but the real profit engine remains the satellite internet service Starlink, which has already passed 12 million subscribers. The artificial intelligence sector, on the other hand, continues to grow at an impressive pace in revenue but is still burning cash in huge volumes.
And here Musk enters. In the conversation with investors, he did not settle for praise for Nvidia but declared a full commitment: the Vera Rubin architecture is, according to him, the best on the market, and the company will work "exclusively with Nvidia" regarding its artificial intelligence chips. Musk added that SpaceX is expected to finish the year with over 2 gigawatts of computing power, and reach nearly 10 gigawatts by the end of next year.
Beyond that, Musk revealed an especially ambitious plan: launching Nvidia's computing systems not only on the ground but also in space, as part of the Starmind satellite project that will begin operating next year. The idea of data centers in space tries to solve the limitations of land and cooling, but it is a massive technological bet that has yet to be proven.
And why does all this concern the Israeli reader? The exclusivity statement is excellent news for Nvidia, the stock that stars in the S&P 500 index and actually in almost every pension fund, advanced study fund, or savings fund that manages exposure to foreign stocks. A huge client that commits to purchasing chips in such volumes directly strengthens the revenue line of one of the central holdings in the savings of most of us.
However, alongside the optimism, risks are hovering. Tomorrow, the lock-up period on insider shares is expected to expire, a move that will release up to 20% of the shares to the market - a volume that increases current liquidity by three times and could weigh on the price. At the same time, the huge capital expenditures and cash burn in the AI field continue to worry investors who fear that the investments will not yield returns at the required pace.
Bottom line, SpaceX provided a strong quarter and a statement that strengthens Nvidia's status, but the investor crowd will test in the coming days if the enthusiasm will hold against the wave of supply that is coming.
