Nvidia NASDAQ:NVDA shares climbed about 3% on Wednesday as SpaceX selected the chipmaker as its sole AI hardware supplier for future infrastructure, while other major semiconductor stocks moved lower.
SpaceX plans to build its AI computing systems around Nvidia hardware, extending the chipmaker's reach beyond conventional data-center deployments. The companies are also developing Starmind AI1, a proposed satellite network that would use Nvidia Rubin GPUs and Vera CPUs for AI processing in orbit.
Nvidia's move comes as SpaceX expands its AI investment. The company spent $18.4 billion on capital expenditures in the second quarter, with about $15.8 billion directed toward AI computing and cloud infrastructure. SpaceX expects more than 2 gigawatts of AI capacity by the end of 2026, potentially increasing toward 10 gigawatts in 2027.
Meanwhile, Advanced Micro Devices NASDAQ:AMD fell more than 6%, while Intel (INTC) and Micron (MU) also declined. The contrasting moves highlight Nvidia's expanding customer base as AI infrastructure spending continues to grow.
The SpaceX deal could give Nvidia another source of AI hardware demand, although investors will likely monitor how quickly SpaceX converts its planned infrastructure expansion into revenue-generating operations.