Nvidia Holds Analyst Favor as SpaceX Lines Up $40 Billion for Chip Purchases

Morgan Stanley and Yorkville Ives back Nvidia as SpaceX reportedly seeks $40 billion for chips; shares sit 4.6% below their 52-week high.

Institutional backing for Nvidia remains firm even as questions swirl around how quickly the artificial intelligence build-out can absorb the hardware now flowing into the market. The stock changed hands at EUR 204.95 in European trading, a modest 0.3% decline on the day, though it has since steadied — a later print showed the shares at EUR 206.20, up 0.3%.

Morgan Stanley restored Nvidia to its top pick in the semiconductor space on October 2, pointing to the company's entrenched position in a market still constrained by AI infrastructure bottlenecks. Yorkville Ives added its own endorsement on Wednesday, launching coverage with an Outperform rating and a $300 price target. In the view of those analysts, Nvidia supplies the foundational computing layer on which the entire AI economy is being built.

That conviction has weathered a stretch of sector-wide jitters. Worries over OpenAI's revenue trajectory and the scale of future AI infrastructure spending weighed on chip stocks, while rising oil prices and interest-rate anxiety added pressure on Wall Street. Reports that OpenAI told its backers annualized revenue reached just under $50 billion at the end of September — below figures that had been circulating — briefly raised doubts about the pace of future hardware orders.

Funding Plans Point to Sustained Demand

Against that nervousness, large-scale financing activity tells a different story. SpaceX is reportedly seeking $40 billion to buy Nvidia chips, with Apollo Global Management expected to lead the round. Axios reported the package would consist of roughly $30 billion in investment-grade corporate bonds and $10 billion in bank loans. Neither company has confirmed the arrangement.

The structure of the deal highlights how specialized computing power has become a strategic priority well beyond conventional data centers. Major industry players are locking in substantial financing capacity early, both to fund their own system build-outs and to sidestep hardware procurement bottlenecks. For observers, the picture is nuanced: software providers face pressure to prove their profitability, while large-scale projects continue to plan around enormous computing capacity.

Beyond the Data Center

Nvidia is also widening its reach outside hyperscale computing. Microsoft unveiled the Surface Laptop Ultra, powered by Nvidia's RTX-Spark platform, extending the company's footprint into AI-capable personal computers.

On the software side, Nvidia introduced the Open Agent Safety Platform, a new security architecture that pairs OpenShell software with the Sentry reference design for controlling autonomous AI agents. The company is making the safety solution available for third-party computing platforms as well, deepening its integration into enterprise operations.

Separately, Nvidia announced $1 billion in commitments over five years to advance scientific research and development in the United States in fields including quantum computing, healthcare, and energy security.

The shares now sit 4.6% below their 52-week high of EUR 216.10, leaving the market to weigh persistent technology investment against near-term economic concerns.