SpaceX Beat Wall Street, So Why Did Investors Focus on Nvidia?

• SpaceX stock gained attention after SpaceX earnings, as Elon Musk confirmed SpaceX AI will run exclusively on Nvidia Blackwell, while AMD stock slid
• SpaceX reported a smaller-than-expected quarterly loss and $7.8 billion in revenue, up more than 90% year over year
• Musk’s Nvidia announcement overshadowed the earnings report, with investors focusing on SpaceX’s long-term AI infrastructure plans rather than quarterly results

SpaceX stock reports have delivered a largely better-than-expected surprise to Wall Street. As investors were in a queue to receive new updates on the company’s first earnings report, the updates did not disappoint in their entirety. On paper, the SpaceX earnings are encouraging. The firm reported a $541M quarterly loss, which was lower than expectations. At the same time, SpaceX earnings reported $7.8B in revenue, up an impressive 90% YoY. However, the market sentiment quickly shifted to another brewing matter, the one involving Nvidia. Investors are now keenly looking forward to SpaceX’s AI ambitions, with Elon Musk announcing how the company’s future AI infrastructure will be built exclusively using Nvidia Blackwell chips. This has led to a ripple effect reverberating through the market as it impacts Nvidia’s rival AMD stock.

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How Did The SpaceX Stock Become A Background Story?

The market is currently discussing two narratives. While the SpaceX earnings report was the highlight of the day, Musk’s announcement of the SpaceX-Nvidia collaboration was another leading story that is currently gaining momentum. During the SpaceX earnings call, Musk confirmed that the company’s future AI computing infrastructure will rely entirely on Nvidia Blackwell chips. Musk further announced a partnership with Nvidia to power the company’s planned Starmind AI orbital compute satellites, slated to launch next year. Musk later announced:

“Going forward, we have decided to build exclusively on Nvidia, because we think the Blackwell architecture is the best architecture,”

Moreover, the Starmind AI-1 payload will feature Nvidia Rubin GPUs alongside Vera CPUs, with Musk calling the Blackwell architecture the best architecture for SpaceX’s future AI infrastructure.

The announcement was enough to divide Wall Street’s attention, with investors focusing on Nvidia’s deal with SpaceX. The attention had now shifted towards Nvidia’s expanding role in SpaceX’s AI strategy after the company secured a deal with one of the world’s leading space exploration firms. This development has also led to the fall of Nvidia’s rival AMD stock. Earlier this year, Musk had expressed his intention to use both Nvidia and AMD chips for his AI computing infrastructure. However, the latest announcement confirmed that SpaceX will move forward exclusively with Nvidia, negatively impacting AMD’s stock.

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AMD Stock Slides Post Musk Nvidia Announcement

While SpaceX shares initially gained following the earnings release before reversing in after-hours trading, Nvidia stock also posted gains after the announcement. AMD, meanwhile, noted a fall in its stock price. The company’s stock fell more than 8% post the announcement, overshadowing its stellar earnings report. The latest AMD stock report delivered record quarterly revenue of $11.5B, backed by strong data center growth and earnings that topped analysts’ expectations.

This contrast explains the current market sentiment in the most accurate manner. The market reaction suggests investors are focusing on AI catalysts more than stable long-term growth narratives. The contrast also encompasses how investors are tracking future AI strategy and infrastructure developments, rather than focusing solely on the company’s quarterly earnings performance.

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