Elon Musk commits SpaceX exclusively to Nvidia hardware, sending AMD shares tumbling

SpaceX just held its first earnings call as a public company, and Elon Musk used the occasion to draw a line in the semiconductor sand. The company will build its entire AI infrastructure exclusively on Nvidia hardware, Musk declared, citing the superiority of Nvidia’s Vera Rubin architecture for processing AI workloads. AMD investors felt the impact immediately. Shares dropped roughly 9% following the announcement, even though AMD had just reported record quarterly revenues of $11.5 billion, up 50% year-over-year. Nvidia, meanwhile, ticked up between 2% and 3.4% on the news. SpaceX’s AI business is growing absurdly fast Q2 2026 revenue hit $7.81 billion, a 92% year-over-year increase. The AI segment is where the numbers get genuinely startling. AI-related revenue reached $2.56 billion in the quarter, representing a 247% jump compared to previous figures. That means roughly one out of every three dollars SpaceX earned came from AI, not rockets or satellite internet. The company has already installed 1.4 gigawatts of compute capacity as of June 2026. Its target: surpass 2 gigawatts by the end of this year and scale to a staggering 10 gigawatts by the end of 2027. The Starmind progra...