Deepwater Asset Management’s Gene Munster said Space Exploration Technologies Corp. (NASDAQ:SPCX) now accounts for about 5% of Nvidia Corp. (NASDAQ:NVDA) revenue, up from roughly 3% in the previous quarter, as Elon Musk’s company expands its artificial intelligence infrastructure.
SpaceX Emerges As Major Nvidia Customer
Applied to Nvidia’s $96.2 billion in second-quarter revenue, Munster’s estimate puts SpaceX-related sales near $4.8 billion. Nvidia has not disclosed SpaceX’s contribution or identified the customer behind the accounting change. Its filing only said it moved one company into its largest cloud-and-internet customer group after a business-model change.
"$SPCX accounted for about 5% of overall revenue. Last quarter it was more like 3%," Munster wrote on X. He said the change "makes sense because SPCX is now a hyperscaler with 8GW coming online next year, same as $META and $AMZN."
Nvidia separately said SpaceXAI will use its new Vera processors and expand Grok’s computing infrastructure with the Vera Rubin platform as it moves toward gigawatts of capacity. SpaceXAI also plans to use Nvidia technology in orbit through its first Starmind artificial intelligence satellite.
Munster Says Nvidia Growth Mix Flipped
Munster said moving SpaceX changes how Nvidia’s customer growth looks on paper. Had SpaceX remained in Nvidia’s group for artificial intelligence cloud providers, industrial companies and enterprises, he estimated that category would have grown 160% from a year earlier, versus Wall Street’s 130% expectation. Growth among the biggest cloud and internet companies would have been 83%, roughly matching expectations.
"This does not change the fact, the the script has flipped to ACIE having higher growth rates going forward vs. hyperscaler," Munster said.
Nvidia Posts Another Blockbuster Quarter
Nvidia’s quarter remained strong. Revenue jumped 106% year-over-year to $96.22 billion, topping Wall Street estimates, while data-center sales more than doubled to $89 billion. Adjusted profit reached $2.22 per share, also beating expectations.
The chipmaker expects third-quarter revenue of about $108 billion, above Wall Street forecasts, while excluding China data-center computing sales. Gross margin held at 75% and is expected to ease to about 74% next quarter.
CEO Jensen Huang said "The AI infrastructure buildout is at full steam," as Vera Rubin moves into full production. Nvidia also expects revenue to grow about 70% in its next fiscal year.
According to Benzinga Edge Stock Rankings, SpaceX continues to show a negative price trend across the Short-, Medium- and Long-term periods.
Price Action: SPCX was trading 0.84% higher at $140.80 in pre-market trading on Thursday.
Photo courtesy: Shutterstock
Login to comment