Here's Exactly What Elon Musk Said About Nvidia on the SpaceX Earnings Call Sarah Holzmann Wed, August 5, 2026 at 8:56 AM PDT 3 min read SPCX NVDA SpaceX (SPCX) shares are down 6.5% intraday after the company's debut quarterly earnings report revealed an extraordinary surge in AI-related capital expenditures that overshadowed a strong revenue beat. It's not all bad news for the market's tech giants today, though, as comments from Elon Musk have given Nvidia (NVDA) a boost. More News from Barchart Huge, Unusual Trading in Marvell Technology Call Options - Investors Are Bullish on MRVL Stock Here's a Realistic Roadmap Toward Generating $1,000 a Month in Options Trading Income Meta Platforms Stock Could Be Signaling a Quick Pop Above $600 Stop Missing Market Moves: Get the FREE Barchart Brief your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! AI Spending Sinks SpaceX Stock Last night, SpaceX reported Q2 2026 revenue of $7.81 billion, representing 92% year-over-year growth and comfortably exceeding the $6.82 billion Wall Street consensus, while its net loss narrowed to $541 million from $1 billion a year earlier. However, investors are fixated on artificial intelligence (AI) capital expenditures that ballooned to $15.8 billion in the quarter, more than double the $7.7 billion spent in Q1 and far above analyst expectations, bringing total Q2 capex to $18.37 billion. The massive spending has triggered free cash flow concerns, even as CEO Elon Musk projected SpaceX would reach a $100 billion annualized revenue run rate by December 2026 emphasizing that the target is "not a question mark, but what we would achieve if we basically did nothing." Management also pulled forward the company's $1 trillion annual revenue target from 2031 to 2030, with a non-zero chance of achieving the ambitious goal in 2029. Despite these ambitious projections, the AI segment booked a $1.26 billion operating loss, while Starlink continued as the only profitable division with $1.66 billion in operating income on $4.29 billion in revenue. Why Nvidia is Higher on SpaceX's Earnings Selloff In a key development that directly benefited Nvidia, Musk announced that SpaceX would build its AI infrastructure exclusively on Nvidia chips, declaring the Vera Rubin architecture to be the best available. This exclusive partnership encompasses both terrestrial data centers and the planned Starmind AI-1 orbital computing satellites, which will feature Nvidia's Rubin GPUs and Vera CPUs. The announcement represents a competitive blow to Advanced Micro Devices (AMD), which had been positioning its Instinct MI450 as a hyperscaler alternative and was SpaceX's prior chip supplier. AMD stock is down more than 6% today, joining SPCX in a sympathy slide. Story Continues Nvidia stock is up 3.7% intraday, extending to what would be its fifth consecutive day of gains, as the SpaceX endorsement reinforced the hyperscaler GPU demand narrative. NVDA trades at a comparatively modest 36x trailing earnings, and the SpaceX commitment adds another major revenue stream to an already dominant position in AI infrastructure. The combination...
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