SpaceX AI growth puts Nvidia and CoreWeave stocks in focus as demand for computing power rises

SpaceX's third-quarter report revealed a substantial surge in its artificial intelligence (AI) business, with the Super Intelligence segment alone growing by an astonishing 830% year over year. This remarkable growth has put Nvidia and CoreWeave stocks under the scrutiny of investors, as the demand for AI computing power continues to escalate.

The AI segment's revenue skyrocketed to $7.6 billion, accounting for 52% of SpaceX's total $14.6 billion revenue. A strategic acquisition in August contributed $608 million to this figure, though even after excluding this acquisition, the AI business showed impressive growth. SpaceX's ambitious expansion of AI computing capacity is expected to further fuel this demand.

Nvidia, a key supplier of graphics processing units (GPUs) used in AI computing, stands to benefit from this growth. SpaceX has heavily invested in AI infrastructure, spending $16.4 billion on capital expenditure for its Super Intelligence business in the third quarter – a staggering 245.5% increase from the previous year. This investment is likely to involve Nvidia's products, presenting a potential business opportunity for the company.

CoreWeave, another company operating in the AI computing space, could also see a boost from rising demand. The company operates a network of data centers and rents out computing capacity to customers involved in AI development and operations. CoreWeave's revenue grew by 112.5% year over year to $2.6 billion in the second quarter, and its revenue backlog has increased to a staggering $104 billion, up 245.5% from a year earlier.

Despite concerns about the potential AI bubble, SpaceX's strong growth and heavy spending on AI infrastructure suggest that demand for AI computing power may remain robust for the foreseeable future. As companies continue to invest in AI, both Nvidia and CoreWeave could witness significant benefits, making them promising investment opportunities for forward-thinking investors.