SpaceX’s plans to buy more Nvidia GPUs is keeping Jim Cramer bullish on the chip stock — SkimNews
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- SpaceX is looking to raise $40 billion to purchase additional Nvidia chips, with Apollo Global Management and a consortium of banks in early talks to structure the financing — no closing timeline has been set.
- SpaceX's deal could include $10 billion in bank loans and $30 billion in investment-grade debt, per the Financial Times, which first reported the talks and were later confirmed by CNBC.
- Jim Cramer said on CNBC's Morning Meeting that SpaceX buying more Nvidia chips is bullish because Musk is executing the playbook Nvidia CEO Jensen Huang laid out: buy compute, lend it out, and profit — 'The more Nvidia [that SpaceX] buys, the more money it makes.'
- Back in August, Elon Musk publicly committed to buying only Nvidia chips for SpaceX, citing the Vera Rubin architecture as 'the best AI computer' and declaring the company 'exclusive to Nvidia.'
- SpaceX raised $25 billion in debt in June to fund its AI ambitions — less than two weeks after its record IPO — and rents compute to customers including Anthropic and Alphabet's Google.
- Wall Street projects SpaceX's AI segment will generate $6.22 billion in revenue in the September quarter, jumping to $11.27 billion in the December period, per the report.
- Nvidia announced on Sept. 28 it was boosting its buyback program by $150 billion to $235 billion, and Cramer has been pushing for an Apple-style 'active buyback' that can step in during late-session volatility.
Why it matters: SpaceX committing $40 billion to Nvidia — explicitly to rent that compute to others — validates Huang's claim from the August earnings call that ROI on Nvidia data centers is now under a year, directly undermining the bearish argument that AI compute spending is unprofitable. With SpaceX's AI revenue projected to nearly double from $6.22B to $11.27B in a single quarter, the move turns a rocket company into a leveraged play on Nvidia's chip economics.
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