Good News for NVDA Stock: Wall Street Says SpaceX Is Proving That Compute Demand Is Still High

Nvidia Corporation (NVDA) may not be enjoying the same blistering rally that made it Wall Street's biggest artificial intelligence (AI) winner, but the latest developments suggest its growth story is far from over. Fresh reports that SpaceX (SPCX) is planning to expand its AI infrastructure with new data centers in Texas have given Wall Street another reason to stay bullish on the AI chip giant, signaling that the race to build next-generation AI infrastructure is still in its early innings. Wedbush Securities believes the development is another positive catalyst for Nvidia.

Analyst Matt Bryson said industry checks indicate that SpaceX is seeking significant volumes of AI infrastructure components for data center projects planned for 2027 and beyond. While Elon Musk dismissed reports of a $52 billion server order as "fake news," Wedbush noted that xAI has historically secured more capacity than it immediately required to avoid supply bottlenecks. With the Colossus AI supercomputer already operating in Memphis and additional facilities planned across Texas and Mississippi, AI infrastructure spending shows little sign of slowing.