Elon Musk Just Gave Fantastic News for Nvidia Investors
Key PointsSpaceX's SI business is demonstrating massive growth, and the company is building out to meet demand.
Elon Musk's recent report on Space Exploration Technologies (SpaceX) revealed impressive earnings growth and exciting news for Nvidia investors. The company's revenue soared by 161%, reaching $4.4 billion, marking its first quarterly profit. Musk shared visionary plans for SpaceX, including perfecting reusable spaceships and enhancing satellite bandwidth by 100 times.
However, the most significant development for Nvidia investors was the remarkable performance of SpaceX's artificial intelligence (AI) business, now named Super Intelligence (SI).
SI's sales skyrocketed by 835% year-over-year, fueled by compute deals, the acquisition of coding firm Cursor, and widespread enterprise adoption of the Grok AI model. Musk likened the integration of SI's AI compute infrastructure to the New York Yankees dominating in Little League, emphasizing the unfair advantage it gave them over competitors.
SpaceX rents out compute power from its massive Colossus I data center cluster, which has secured contracts with Alphabet and Anthropic, generating $920 million and $1.2 billion in monthly revenue, respectively.
Musk's company is currently constructing Colossus II, which will primarily feature Nvidia's Vera Rubin chip infrastructure. To optimize training, SI aims to deploy 440,000 Vera Rubin computers by the second quarter. Grok's usage is rapidly expanding, and SpaceX is scaling it for enterprise applications. Musk anticipates Grok Bot, the AI agent, to be used by humans in various roles.
He believes SpaceX could generate $500 billion to $1 trillion in Annual Recurring Revenue (ARR) by the end of 2027, potentially making it one of the world's most valuable companies by sales.
Nvidia CEO Jensen Huang forecasted $1 trillion in sales through 2027 from the Blackwell and Rubin lines alone. CFO Collette Kress stated that the company expects sales to grow by 70% next year, despite a supply-constrained climate. Wall Street anticipates Nvidia's sales to reach $692 billion next year, a 68% increase. Musk's decision to use Vera Rubin computers, not just chips, further highlights the significant upside potential for Nvidia stock in the coming years.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
