NVIDIA to Power SpaceX AI Infrastructure: Will This Fuel NVDA's Growth?

NVIDIA Corporation NVDA is gaining another high-profile customer as Elon Musk-owned Space Exploration Technologies Corporation (SPCX), commonly known as SpaceX, adopts its AI infrastructure to support next-generation engineering, manufacturing and operational workloads. During SpaceX’s second-quarter 2026 earnings call, Elon Musk said that the company would use NVIDIA’s GPUs (graphics processing units) and systems for its AI needs.

The enhanced partnership highlights how NVIDIA is expanding beyond cloud computing into industrial AI, creating new growth opportunities across advanced manufacturing and aerospace. In the latest development, Elon Musk stated that SpaceX will leverage NVIDIA’s new Vera Rubin platform to handle AI workloads at the company’s data centers.

SpaceX will use NVIDIA architecture focusing on advanced Vera Rubin and ground/orbital systems for its new Starmind AI satellite program rather than standard ground-based DGX SuperPOD deployments. Elon Musk announced that SpaceX will run its future AI compute infrastructure exclusively using NVIDIA systems both on Earth and in orbit.

The timing is favorable for NVIDIA. In the first quarter of fiscal 2027, the company reported record revenues of $81.6 billion, up 85% year over year, while Data Center revenues surged 92% to $75.2 billion. The AI Clouds, Industrial and Enterprise business generated $37.4 billion in revenues, reflecting growing demand from enterprises outside the traditional hyperscale market. Management also forecast second-quarter revenues of about $91 billion, signaling sustained AI spending.

While SpaceX alone is unlikely to materially change NVIDIA’s financial results, the deal reinforces a broader trend. More industrial companies are investing in AI infrastructure to improve productivity, automate complex processes and speed innovation. Every major enterprise deployment also strengthens NVIDIA’s software ecosystem and creates opportunities for future hardware upgrades.

As AI adoption spreads across industries, marquee customers like SpaceX enhance NVIDIA’s credibility and could encourage more enterprises to invest in its end-to-end AI platform, supporting long-term revenue growth. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $387.19 billion, indicating a 107% year-over-year surge.

Where Do Competitors Stand Against NVIDIA?

While NVIDIA continues to win high-profile enterprise customers like SpaceX, Advanced Micro Devices, Inc. AMD and Broadcom Inc. AVGO are also strengthening their positions in enterprise AI infrastructure.

Advanced Micro Devices is expanding its enterprise AI footprint through partnerships with major cloud providers, research institutions and industrial customers. In the second quarter of 2026, AMD's Data Center revenues soared 107% year over year, driven by robust demand for EPYC server processors and Instinct AI accelerators. The company is also enhancing its ROCm open software platform to make AI deployment easier for enterprises seeking alternatives to NVIDIA. As more manufacturing, aerospace and automotive companies adopt AI, Advanced Micro Devices is well-positioned to benefit from rising enterprise infrastructure spending.

Broadcom is targeting the same opportunity through custom AI accelerators and high-speed networking solutions. In the second quarter of fiscal 2026, Broadcom’s AI semiconductor revenues rose 143% year over year to a record $10.8 billion. Broadcom works closely with hyperscalers and large enterprises to design custom AI chips while supplying Ethernet networking products that connect large AI clusters.

Although both companies are building strong enterprise AI ecosystems, NVIDIA retains a significant advantage through its combination of GPUs, networking, AI software and developer tools, making it the preferred platform for many large-scale AI deployments.

NVIDIA’s Price Performance, Valuation and Estimates

Shares of NVIDIA have risen around 13.6% year to date, underperforming the Zacks Computer and Technology sector’s gain of 14.6%.

NVIDIA YTD Price Return Performance

Image Source: Zacks Investment Research

From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 19.52, below the sector’s average of 21.26.

NVIDIA Forward 12-Month P/E Ratio

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 90.6% and 38.3%, respectively. Estimates for fiscal 2027 and 2028 have been revised upward over the past 30 days.

Image Source: Zacks Investment Research

NVIDIA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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