SpaceX's AI data-center buildout bolsters Nvidia outlook, Wedbush says
AI Market Summary
Reports that SpaceX is planning major AI data-center expansion from 2027 reinforce the durability of hyperscaler-like compute demand, supporting long-duration expectations for Nvidia GPU orders. Wedbush frames the development as incremental evidence that AI infrastructure buildouts remain robust. Nvidia's recent earnings beat and above-consensus revenue guidance further validate data-center momentum, potentially improving near-term investor confidence after the stock's pullback.
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NCSKNVDA2USD/USDT-5.44%
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▲ Bullish
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SpaceX is moving forward with plans to expand its AI data-center footprint starting in 2027, a buildout expected to require sizable orders of AI infrastructure components. Wedbush said the initiative reinforces its conviction in long-term demand for Nvidia's GPUs.
Nvidia's latest earnings also came in ahead of expectations. The company posted Q1 revenue of $8.162 billion, up 85% year over year, with the data-center segment accounting for 92% of sales. For Q2, Nvidia guided to $9.1 billion in revenue, well above market forecasts.
Even after a recent pullback in the stock, analysts largely maintain a "Strong Buy" stance, with an average price target of $304.32.
