1 hour ago
23
Nvidia just posted a quarter so absurdly good that analysts aren’t celebrating so much as interrogating. The company reported fiscal Q2 2027 revenue of $96.2 billion, a 106% increase year-over-year, and the immediate question on Wall Street wasn’t “how did they do it” but rather “who’s writing these checks.”
The answer, increasingly, appears to be SpaceX.
The numbers behind the speculation
Nvidia’s data center segment drove the bulk of the performance, pulling in $89 billion for the quarter. That’s a 117% jump from the same period a year ago.
The company’s forward guidance was equally aggressive. Nvidia projected Q3 revenue of $108 billion, give or take 2%, and signaled fiscal 2028 revenue growth of roughly 70%. If that holds, Nvidia would be on track for approximately $690 billion in annual revenue.
But the number that’s really got analysts talking is smaller and more specific: SpaceX’s share of Nvidia’s quarterly revenue reportedly jumped from around 3% to approximately 5%. That translates to roughly $4.8 billion in a single quarter, flowing from Elon Musk’s rocket and satellite company to Jensen Huang’s GPU empire.
Why SpaceX needs this much compute
The company has committed to an AI infrastructure buildout targeting 8-10 gigawatts of compute capacity by the end of 2027. SpaceX has reportedly committed to exclusively using Nvidia’s Vera Rubin architecture for this expansion.
SpaceX is also pursuing what it calls Starmind satellites, essentially AI processing nodes in space that leverage the company’s existing Starlink constellation. Joint ventures between the two companies are aimed at putting compute capabilities in orbit.
Nvidia also disclosed an approximate $21 billion equity stake in SpaceX, part of a broader $50 billion combined stake that also includes Intel.
Wall Street’s double-edged enthusiasm
Firms including UBS and Mizuho have flagged the importance of understanding how much of Nvidia’s growth trajectory depends on a single relationship. If SpaceX pulled back spending, delayed its infrastructure timeline, or pivoted to alternative chip architectures, the ripple effects on Nvidia’s revenue would be significant.
Nvidia’s data center revenue didn’t surge 117% on SpaceX alone. Hyperscalers like Microsoft, Google, Amazon, and Meta continue to pour capital into GPU clusters, and sovereign AI initiatives around the world are adding to the order backlog.
What this means going forward
For investors, the key metric to watch in coming quarters is whether SpaceX’s share of Nvidia revenue stabilizes, grows, or pulls back. Analysts are also watching whether SpaceX’s 8-10 gigawatt compute target stays on schedule.
The $21 billion equity stake adds another wrinkle. Nvidia’s balance sheet is now partially tied to SpaceX’s private valuation, which fluctuates based on Starlink subscriber growth, launch cadence, and broader market sentiment toward private space companies. That creates a feedback loop where Nvidia’s financial health is linked to SpaceX through both revenue and investment returns.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
English (US) ·