NEW YORK, August 6, 2026, 04:09 EDT
- Nasdaq premarket activity was underway. The main session opens at 09:30 EDT.
- NVIDIA ended Wednesday at $219.22, rising 3.43%. The session marked its fifth consecutive advance.
- Space Exploration Technologies Corp. NASDAQ:SPCX aims for more than two gigawatts this year, with a goal of approaching 10 gigawatts by the end of 2027.
NVIDIA Corporation NASDAQ:NVDA saw its market value rise by around $177.6 billion on Wednesday. The increase followed SpaceX opting to rely solely on NVIDIA chips.
The significance lies in NVIDIA’s gains amid a declining tech sector. The Nasdaq slipped 0.8%. Meanwhile, its top rival in AI chips dropped even after issuing a forecast that beat expectations.
SpaceX forecasts its computing capacity will surpass two gigawatts by the end of the year. Elon Musk stated the figure might reach nearly 10 gigawatts by end-2027. This level of scale transforms an endorsement into possible unit demand.
NVIDIA could see roughly $35 billion in revenue per gigawatt installed, according to Wolfe Research analyst Chris Caso. This implies that a total of ten gigawatts could translate to a hypothetical $350 billion in hardware sales.
This surpasses NVIDIA’s present yearly Data Center revenue run rate of roughly $301 billion. There is no confirmed order. The reports did not specify a contract amount or a set timetable for delivery.
Musk described Vera Rubin as “the best AI computer.” He also stated: “We’re exclusive to Nvidia.” The Wall Street Journal
The market reaction was more decisive. Shares of Advanced Micro Devices Inc. NASDAQ:AMD dropped 7.2% after the company projected third-quarter revenue at approximately $13 billion, compared to consensus estimates of $12.52 billion.
Preliminary value changes based on Wednesday’s closing figures are as follows:
| Stock | Aug. 5 close | Daily move | Preliminary value change | Main catalyst |
|---|---|---|---|---|
| NVIDIA | $219.22 | +3.43% | +$177.6 billion | Chip exclusivity deal with SpaceX |
| AMD | $482.05 | -7.16% | -$61.3 billion | Forecast failed to match high expectations |
The total relative swing reached approximately $239 billion. NVIDIA’s increase was 2.9 times larger than AMD’s decline. However, AMD’s revenue midpoint remained 3.8% above consensus estimates.
NVIDIA was already rebounding prior to the SpaceX call, climbing 15.4% over five straight sessions. The stock posted a rise each day.
| Session | Closing price | Daily move | Change from July 29 |
|---|---|---|---|
| July 29 | $190.01 | -3.55% | — |
| July 30 | $195.04 | +2.65% | +2.65% |
| July 31 | $200.75 | +2.93% | +5.65% |
| August 3 | $206.64 | +2.93% | +8.75% |
| August 4 | $211.94 | +2.56% | +11.54% |
| August 5 | $219.22 | +3.43% | +15.37% |
The valuation is supported by a significantly larger earnings base. Data Center revenue for the first quarter hit $75.2 billion, accounting for roughly 92% of overall sales.
| NVIDIA operating measure | Q1 FY27 | Q1 FY26 | Change |
|---|---|---|---|
| Revenue | $81.62 billion | $44.06 billion | +85% |
| Data Center revenue | $75.20 billion | About $39.17 billion | +92% |
| GAAP gross margin | 74.9% | 60.5% | +14.4 points |
| GAAP operating income | $53.54 billion | $21.64 billion | +147% |
| Non-GAAP diluted EPS | $1.87 | $0.78 | +140% |
Management projects second-quarter revenue at $91 billion, with a possible variation of 2% in either direction. The outlook does not include any China Data Center compute revenue. Results will be released on August 26.
Wall Street maintains a positive outlook, with different methods producing similar results. According to both major datasets below, there is an implied upside of around 38% from the close on Wednesday.
| Analyst dataset | Consensus | Analysts | Average target | Implied upside | Target range |
|---|---|---|---|---|---|
| MarketBeat | Buy | 53 | $304.26 | 38.79% | $218–$500 |
| MarketScreener | Buy | 61 | $302.83 | 38.14% | $180–$500 |
MarketBeat lists 51 buy ratings, two hold recommendations and zero sell calls. Caso noted SpaceX’s remarks suggest “some evidence that spending growth is likely to continue.” SpaceX’s chief financial officer also mentioned that new compute capital sees payback in under a year. MarketBeat
Risks: SpaceX’s goal for increased capacity depends on large and ongoing financial commitments. Capital expenditures for the quarter totaled $18.4 billion, with $15.8 billion allocated to AI infrastructure. Export controls and restrictions on chip supply may postpone NVIDIA’s revenue.
U.S. markets remained shut at the dateline, but premarket activity had begun. NVIDIA is not expected to release its next financial update before August 26. Market attention now shifts to SpaceX order information, trends in AI investment, and Friday’s jobs report from the United States.
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