Seeking Alpha says SpaceX’s AI plans could boost Nvidia demand

SpaceX’s AI plans and Nvidia

Seeking Alpha reports that Nvidia could receive what the article describes as a major benefit from SpaceX’s plans for AI data centers. The piece says those plans have been overlooked and could serve as an important growth driver for Nvidia.

Compute target for 2027

According to the article, SpaceX is targeting 10 gigawatts of AI compute in 2027. Seeking Alpha says that this scale of demand could result in spending of more than $400 billion on Nvidia chips, which the article presents as a source of strong demand for the company.

Broader spending outlook

The article also points to a Bank of America forecast that AI data center infrastructure spending could reach $3 trillion by 2030. Seeking Alpha says this estimate suggests the AI buildout is still in an early stage and supports the view that demand for related hardware remains substantial.

Valuation point

Seeking Alpha says Nvidia stock is trading at just above 13 times analysts’ fiscal 2028 earnings-per-share targets. The article argues that this valuation does not fully reflect the company’s ability to grow if SpaceX follows through on its commitments and the broader AI infrastructure spending continues.

Disclosure and sourcing

The article says it was written by an analyst who disclosed no current stock, option, or derivative position in the companies mentioned and no plan to open one within 72 hours. Seeking Alpha also says the author was not paid by any company discussed and has no business relationship with them.