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SpaceX Just Gave Me 40 Billion Reasons to Add More Nvidia

When one of the world's most aggressive builders reportedly moves to borrow billions just to secure a single supplier's hardware, it raises a question worth sitting with: what do they know that the rest of us are still catching up…

By Alex Sirois
Published October 9, 2026, 7:15am ET · 3 min read

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A photograph of the NVIDIA company sign. It features a bright green, stylized eye logo with layered contours, placed above the word 'NVIDIA' in white, bold, sans-serif letters, all mounted on a black rectangular sign base. Lush green bushes are visible behind and to the left of the sign, with a modern building partially visible on the right. Bright green grass fills the foreground.
The NVIDIA company sign, featuring its iconic green eye logo, reflects the tech giant's enduring position in the market as investors consider its financial outlook. © BING-JHEN HONG / iStock Editorial via Getty Images

My NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) position grew again this week. My reason showed up Wednesday night, when reports said SpaceX wants to raise $40 billion in debt “to buy more Nvidia chips.” The report is still unconfirmed. Still, when one of the most aggressive builders on the planet talks about borrowing against its future to buy what Nvidia sells, I’m comfortable buying more.

My thesis is simple. Every serious AI builder needs Nvidia’s full stack, and now they are borrowing to get it. SpaceX AI already ranks among the lead partners receiving Vera CPU shipments, alongside OCI and AWS. A $40 billion loan aimed at Nvidia hardware tells me that customer wants far more.

Three Data Points Behind Every Purchase

First, growth keeps speeding up. Revenue for Nvidia’s fiscal second quarter hit $96.22 billion, up 105.8% from a year earlier, and Data Center revenue rose 117% to $89.02 billion. Guidance for this quarter calls for $108.0 billion. Management expects growth of about 70% in fiscal 2028, and it says real demand runs “much higher” than what supply can cover.

Second, each new platform makes more. Nvidia puts its revenue opportunity per gigawatt at roughly $18 billion for Hopper, $25 billion for Blackwell and $40 billion for Vera Rubin. That gives me a second set of 40 billion reasons: every gigawatt SpaceX uses with Vera Rubin carries that much opportunity.

Third, the business throws off cash on a strong balance sheet. Nvidia posts a 55.60% net margin, a 92.21% return on invested capital, with 503x interest coverage. It returned about $26.0 billion to shareholders last quarter and still has about $99.0 billion left under its buyback authorization. The dividend yield is a negligible 0.0175%, so I own Nvidia for compounding, and I collect income elsewhere.

Why My Money Skips AMD

Advanced Micro Devices (NASDAQ:AMD) is the obvious alternative, and I have looked hard at it. AMD trades at about 234 times trailing earnings, while Nvidia trades at about 46. AMD’s operating margin sits near 10.7%, against Nvidia’s 60.38%. AMD’s latest quarterly revenue grew a solid 50.1%, but Nvidia grew about twice as fast from a far bigger base. On these numbers, I pay a lower multiple for the faster grower with the higher margins.

Real Risk Hiding in the Financing

Debt-funded demand cuts both ways. Nvidia’s supply obligations have increased to $279 billion, its guarantee obligations reach as high as $108.5 billion, and days sales outstanding rose to 60 days from 45. A report on OpenAI’s revenue pushed AI chip stocks lower Thursday, and Nvidia fell 2.94%. If borrowers like SpaceX pull back, those commitments will hurt.

I still own the position because demand exceeds supply. Management expects supply to stay the constraint “at least through the end of fiscal year 28,” and it puts the cloud industry backlog at “greater than 2 trillion.” All of that capacity still has to be powered, cooled, and connected by somebody, and we pulled together seven of those suppliers in a free report here.

What Keeps My Buy Button Active

Nvidia expects Vera Rubin to make up about 20% of Data Center revenue this quarter and CPU revenue to more than double in fiscal 28. The next earnings report lands November 17, 2026. The world’s most ambitious builders keep borrowing billions to buy Nvidia, and I will keep putting my own savings to work right beside them.

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Alex Sirois

Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.

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