Why SpaceX Stock Popped After Nvidia's CEO News
By now, you’ve heard the news: Jensen Huang, the legendary CEO of Nvidia (NASDAQ:NVDA), has resigned after alleged affairs with not only a Chinese spy but also an Nvidia executive cost him his job. Nvidia stock is down 4.6% through 11:15 a.m. ET Thursday; meanwhile, shares of one of Nvidia’s biggest customers, Elon Musk’s Space Exploration Technologies (NASDAQ:SPCX), are up 2.9%.
This is not a coincidence.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: SpaceX.
What’s next for Jensen Huang
On the surface, you might expect that Nvidia’s troubles would be bad news for SpaceX. Nvidia’s GPU chips, after all, have been key to the artificial intelligence revolution, and Elon Musk has bet the future of his company on AI (or as he calls it, SI — “SuperIntelligence”). A disruption in the AI industry arising from Huang’s ouster could theoretically hurt SpaceX.
But it could also help SpaceX.
Consider: Just last night, popular stock commenter “zerohedge” posted on X.com a suggestion that Elon Musk hire Jensen Huang to work at SpaceX. Musk responded quickly — and positively — that he would consider Huang joining SpaceX “an honor.”
What Nvidia’s bad news means for SpaceX stock
More than just an “honor,” SpaceX (or Tesla (NASDAQ:TSLA), or a merged SpaceX-and-Tesla) poaching Huang from Nvidia would be a coup, a brilliant move on Musk’s part, and a way to turbocharge SpaceX’s own efforts to build artificial intelligence chips and AI data centers in space. In one fell swoop, Musk might co-opt arguably the leading mind in semiconductor chips, bring him in-house — and deny him to any of SpaceX’s competitors.
I don’t know that this will happen. I only know that if I were a SpaceX or Tesla shareholder, I’d be crossing every finger and hoping it does happen.
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