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SpaceX (SPCX) is moving its orbital AI data center plans from an ambitious concept toward an actual timeline. What initially sounded more like a bold concept during the company’s IPO investor meetings now has a specific timeline attached to it. Nvidia (NVDA) is also committed to the project as its exclusive partner, adding another major technology name to the company’s plans for orbital AI infrastructure.
A Proven Revenue Engine Behind the Orbital AI Bet
The orbital AI story is just one part of SpaceX’s investment case. The company began trading on the NASDAQ in June 2026 at an approximately $1.77 trillion valuation, setting a record as the largest IPO in U.S. history. Before that milestone, it had already established a substantial revenue base. SpaceX generated $18.7 billion in revenue in 2025, up 33% year over year. Analysts expect revenue to reach $25 billion in 2026. Its reusable rocket technology remains a major advantage by helping the company reduce launch costs by about 90% compared with traditional competitors. Rivals have yet to close that gap.
Starlink is the main engine behind SpaceX’s profitability and revenue. The satellite internet business generated $11.39 billion in revenue and approximately $4.5 billion in segment operating income in 2025. Because Starlink is the company’s only consistently profitable division, its earnings provide the financial capacity to pursue projects that may take longer to generate returns. That includes its emerging plan to build AI data centers in orbit, adding another long-term investment to an already profitable core business.
Nvidia Became SpaceX’s Newest Growth Partner
Elon Musk has now provided a clearer timeline for SpaceX’s orbital AI plans. In an update on X, he said the company expects to launch its first AI satellites powered by Nvidia technology in the fourth quarter of 2027. The company is targeting significant scale for the orbital computing network by 2028. That timeline is notably earlier than SpaceX’s previous comments, which had indicated that orbital data centers could launch as early as 2028.
The hardware is also being designed differently from traditional data center infrastructure. Musk said each satellite-based data center will be considerably simpler, denser, cheaper, and lighter than a conventional computing rack. The company has already requested FCC approval for a constellation of up to 1 million satellites designed to handle complex AI workloads. Nvidia has been named the exclusive technology provider for the entire buildout. Nvidia also confirmed that SpaceX will use its Vera CPU to power Grok and a new generation of AI agents.
The real significance is that the idea is moving from a broad vision toward an actual deployment plan. The company now has a specific launch target, an exclusive technology partner, and a defined roadmap that is moving faster than previously anticipated. For Nvidia, that could create a new source of demand for its processors. For SpaceX, the project could become another major growth engine alongside Starlink, benefiting from the rapidly rising demand for AI infrastructure.
Starship Just Flew Successfully
The company’s orbital AI data center project will demand significant spending as well as strong execution. The plan depends heavily on Starship, but the rocket already completed its Flight 14 successfully a few days ago. A Starship launch was halted in July, raising new concerns about the rocket’s execution as SpaceX intends to use it to deploy its AI satellites into orbit. The financial commitment is also substantial. The company’s second-quarter capital expenditures jumped to $18.37 billion, including $15.83 billion dedicated to AI infrastructure. That level of spending shows that the project will require significant cash investment and patience before it can start generating returns.
SpaceX’s orbital AI plans will face their first major test in late 2027, when the company is expected to launch its first AI satellites. Until that launch approaches, investors will be focused on whether Starship can improve its reliability. They will also be watching whether Starlink continues generating enough cash to support the large-scale buildout. Progress on both fronts will be crucial to turning the company’s orbital AI plans from an ambitious concept into a real deployment.
About Nvidia Stock
Nvidia is a leading American technology company specializing in graphics processing units and accelerated computing infrastructure for artificial intelligence and gaming. The company serves as a central hardware and software engine for the global artificial intelligence boom. Its Data Center business is by far the largest, accounting for roughly 90% of Nvidia's total revenue. Founded in 1993, the company is headquartered in Santa Clara, California.
NVDA stock posted a 25.85% gain over the past year, but its performance fell short of the broader semiconductor sector. The iShares Semiconductor ETF (SOXX) gained 108.53% during the same period. A similar pattern has continued this year. Nvidia is up approximately 21% on a year-to-date (YTD) basis, whereas the ETF has surged around 78%. Nvidia’s underperformance does not necessarily reflect weakening fundamentals. Instead, the stock has faced a tougher comparison as investors have become more cautious about its valuation, the sustainability of AI infrastructure and growing competition from custom AI chips.
What Do Analysts Expect for NVDA Stock?
On Sept. 11, Goldman Sachs analyst James Schneider reiterated a Buy rating on Nvidia and set a price target of $300. The analyst assigned the rating due to a combination of factors tied to the company’s long-term AI positioning and execution. He points to management’s estimates that the AI market could reach $3 trillion to $4 trillion by 2030. This boom is expected to help the company’s long-term growth prospects. Based on 50 Wall Street analysts covering the stock, NVDA holds a consensus “Strong Buy” rating, with a mean price target of $326.90, which reflects 43% upside from the current share price.
