After making considerable money from the artificial intelligence boom, Nvidia began aggressively investing capital in other companies. It is a major shareholder in Intel, and SpaceX’s IPO and subsequent rise in the issuer’s stock price valued Nvidia’s stake in the company at $21 billion by the end of the second quarter.
Nvidia founders Jensen Huang (left) and Elon Musk (right). Image source: NVIDIA
Related information be exposed This weekend, Nvidia itself reported to U.S. regulators that it owned 122.8 million SpaceX Class A shares at the end of the second quarter. If the current price of these securities does not exceed $140 per share, it would reach $170.86 by the end of June, giving Nvidia’s share price an estimated $21 billion. However, its value has now fallen to $17.2 billion. In fact, it’s the second-largest stake Intel owns in terms of value, behind Intel Nvidia. Nvidia’s stake in Intel, currently worth $22 billion, was worth $30 billion by the end of the second quarter.
Within SpaceX’s own capital structure, Nvidia is the sixth-largest investor. The company’s leader, Elon Musk, owns $850 billion worth of stock. Alphabet ranks second with $78 billion. Nvidia invested $10 billion in xAI as early as January, and xAI became part of SpaceX, giving the former the right to own shares of the parent company. The SpaceX and xAI deal was completed in February, bringing the two companies’ combined capital to $1.25 trillion. The ties between SpaceX and Nvidia have been reinforced by recent statements from Elon Musk, who pledged to use only Nvidia components when developing the company’s computing infrastructure, calling them the best for training AI models and inference. Next year, SpaceX expects to receive a large number of Nvidia Vera Rubin-generation accelerators.
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