Elon Musk’s Big Nvidia Bet Takes Center Stage After SpaceX Earnings — NVDA Gains While SPCX Falls

• SpaceX also announced a partnership with Nvidia to design the Starmind AI1 satellite compute payload. 
• Musk said on the company’s earnings call that there is a non-zero chance of hitting the $1 trillion annual revenue milestone in 2029. 
• SpaceX also said that it is on track to reach more than $100 billion in annualized revenue run rate (ARR) by December 2026.

SpaceX outlined ambitious growth plans on its second-quarter 2026 earnings call on Tuesday, highlighting an exclusive partnership with Nvidia, a push toward $100 billion in annualized revenue run rate by year-end, and an accelerated target of $1 trillion in yearly revenue by 2030.

SPCX shares traded 7% lower after-hours.

Exclusive Nvidia Tie-Up For AI Compute

Chief Executive Elon Musk said SpaceX will build its AI infrastructure exclusively on Nvidia chips going forward.

“Going forward, we’ve decided to build exclusively on Nvidia, because we think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia. We’re exclusive to Nvidia,” Musk said.

SpaceX also announced a partnership with Nvidia to design the Starmind AI1 satellite compute payload.

Starmind is SpaceX’s planned fleet of AI satellites.  Each satellite will pack Nvidia’s next-generation Rubin GPUs and Vera CPUs, delivering datacenter-class computing power in orbit. The company plans to begin launching these satellites next year, with similar optimized designs potentially used on the ground as well.

SpaceX expects to receive a significant share of Nvidia’s GPUs next year. NVDA stock edged up 2% after hours on the news.

Path To $100B ARR

SpaceX also said that it is on track to reach more than $100 billion in annualized revenue run rate (ARR) by December 2026.

This includes contributions from the pending $60 billion acquisition of Cursor, slated to be closed soon. The projection is based on expected revenue in the final month of the year and reflects strong demand for AI cloud services. In the first weeks of the third quarter alone, the company already contracted an additional $6.7 billion in cloud revenue over a six-month period starting in October.

Trillion-Dollar Ambition Accelerated

Internally, SpaceX has pulled forward its target of $1 trillion in annual revenue to 2030, earlier than the previous 2031 goal. Musk further noted there is even a non-zero chance of hitting that milestone in 2029.

“Our internal projections for reaching $1 trillion in revenue, not ARR, but revenue, have moved up from 2031 to 2030. … There’s a non-zero chance of that being in 2029,” the CEO said.

The acceleration is driven by rapid scaling in AI compute capacity — expected to exceed 2 gigawatts by the end of 2026 and approach 10 gigawatts by the end of 2027 — alongside growth in Starlink and launch services.

SpaceX Q2 Report

These targets come as SpaceX reported $7.8 billion in Q2 revenue, up 92% year-over-year. Net loss narrowed to $541 million, or $0.09 per share, from $1.0 billion, or $0.34 per share, in the year-ago period. The company ended the quarter with $100 billion in cash and marketable securities.

However, shares dropped after hours as investors focused on the $18.4 billion capital expenditure recorded in the three months through the end of June. The company spent $15.8 billion on building its artificial intelligence capabilities alone.

How Did SPCX Retail Traders React?

On Stocktwits, retail sentiment around SPCX stock stayed within ‘bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

A Stocktwits user highlighted concerns for the stock, including no profit, uncertain growth prospects, and competition.

https://www.stocktwits.com/TwelveEggsInOneBasket/message/660938304

Another highlighted the company’s $1 trillion market cap despite its loss-making status.

SPCX shares have been volatile since listing in June. The stock is now trading at about $125, well below the $135 IPO price and remains far below its post-IPO peak of nearly $225.

NVDA shares, meanwhile, have gained 14% this year. 

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