The GPU market is largely controlled by two key players: Nvidia and Advanced Micro Devices (AMD). Nvidia has been rolling out its Blackwell architecture at a massive scale and is increasing its focus on the Vera Rubin platform. AMD, on its part, is marketing its MI300 systems and preparing its MI400 accelerators to remain competitive.
Several tech giants, including Amazon, Alphabet, Microsoft, Oracle, Meta Platforms, Anthropic, and OpenAI, are not sticking with a single chip supplier for their artificial intelligence initiatives. Instead, they’re combining solutions from both Nvidia and AMD, mainly due to tight supply issues, varying workload demands, and the urgency to progress without delays.
In related news, during Space Exploration Technologies’ first earnings call as a public entity, Elon Musk made it clear where he stands in the chip market.
Musk’s Clear Commitment
During SpaceX’s second-quarter earnings call, Musk was quite straightforward:
“Going forward, we’ve decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture. We believe it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia. So we’re exclusive to Nvidia.”
This stance from Musk isn’t surprising to those who have followed Tesla’s journey. They’ve been utilizing Nvidia’s hardware for their autonomous vehicle tech while concurrently developing their own chips for future projects. Musk has shown admiration for Nvidia CEO Jensen Huang, confirming that both Tesla and SpaceX will continue to rely heavily on Nvidia products. This latest statement simply reinforces their already strong partnership.
SpaceX’s Utilization of Nvidia Technology
Interestingly, AI chips aren’t just for chatbot functionality. SpaceX employs clusters of GPUs to help build orbital data centers, enhance Starlink operations, plan Starship missions, and even simulate activities similar to Tesla’s work with autonomous systems. The spotlight is currently on Starmind, a specialized satellite payload developed using Nvidia’s Vera Rubin NVL72 system.
SpaceX has quickly transformed its Nvidia acquisitions into a lucrative AI infrastructure business. Their filings reveal a strategy of leasing substantial Nvidia computing power instead of solely using it to develop their proprietary generative model, Grok.
Additionally, Anthropic has signed a $1.25 billion monthly cloud services agreement with SpaceX, ensuring access to compute resources across SpaceX’s supercomputers, which comprise approximately 325,000 Nvidia GPUs. Google Cloud has made a less significant commitment of $920 million monthly for access to around 110,000 Nvidia GPUs, while Reflection AI has also entered into a multiyear deal worth up to $6.3 billion for Nvidia hardware.
Why Nvidia Appears to be a Stronger Choice than AMD
For SpaceX and Tesla, Musk has aligned with the industry leader in chips. The data seems to support that decision.
Nvidia carries a market cap of about $5.3 trillion, in contrast to AMD’s roughly $830 billion. In the second quarter, Nvidia’s data center revenue reached $89 billion, soaring 117% year over year. AMD, though also seeing impressive growth with $6.7 billion from its data center segment (107% increase year over year), is playing catch-up from a smaller base compared to Nvidia. It appears Nvidia is outpacing AMD significantly.
When it comes to valuation, Nvidia boasts a forward price-to-earnings ratio around 23, while AMD is valued at approximately 67 times its forward earnings. Essentially, investors are willing to pay nearly three times as much for AMD’s anticipated earnings despite Nvidia’s established dominance in software, product systems, and a customer base that even includes Musk’s ventures.
This doesn’t imply AMD is going away anytime soon—hyperscalers will keep using multiple suppliers and the MI400 is likely to find its share of opportunities. However, it seems like Musk is confidently opting for the chip leader for his SpaceX projects rather than taking a risk with second-best options. This suggests a reliable trend for investors, I believe.
Should You Invest in Nvidia Now?
Before diving into a purchase of Nvidia stock, consider this:
The Motley Fool’s Stock Advisor analysts have recently revealed their picks for what they consider the top 10 stocks right now, and interestingly, Nvidia isn’t on that list. The chosen stocks are geared towards long-term gains and potential substantial returns moving forward.
To give you an idea of their performance—Netflix made the list back in December 2004. If you had invested $1,000 then, it would be worth approximately $417,413 today. Similarly, Nvidia was a recommendation back in April 2005, and that same $1,000 investment would have blossomed into around $1,341,294.
This impressive track record explains why investors flock to theirs; they’ve consistently outperformed the S&P 500 nearly five times. However, remember that not every top 10 pick may resonate with every investor, and due diligence is always key.
*Returns as of September 12, 2026.
