Nvidia Stock Is on the Rise, After Elon Musk Says SpaceX Will ‘Exclusively’ Buy Its Chips

Nvidia shares climbed Wednesday, after Elon Musk said SpaceX will exclusively buy its chips.

Musk said SpaceX expects to secure a "significant percent" of Nvidia's GPUs next year.

Nvidia shares are getting a lift after some encouraging comments from SpaceX and Tesla CEO Elon Musk .

Musk said in SpaceX's (SPCX) first earnings call as a public company yesterday that it will only buy Nvidia (NVDA) chips for the foreseeable future to run its AI products. Nvidia shares were up 4% in recent trading, on track to log their fifth straight day of gains, while SpaceX shares dropped 12%.

"We've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture," Musk said, per an AlphaSense transcript. "We think it's the best AI computer and we greatly value our close cooperation and partnership on many levels with Nvidia."

When asked on the call about the amount of hardware SpaceX is securing to bring more AI computing capacity online over the next year, Musk said SpaceX anticipates receiving "a very significant percent" of Nvidia's GPUs next year.

Musk's companies have used Nvidia hardware for years, and the CEO has at times rerouted chips reserved for Tesla (TSLA) to X and xAI, which are both now part of SpaceX. He has previously said that as long as Nvidia continues to make chips better than what his companies can produce internally, they will remain an Nvidia customer. That could change in the future, as Tesla and SpaceX are planning to build a jointly owned factory to make their own AI chips .

With Wednesday's gains, Nvidia shares are up 18% since the start of the year, but still about 7% off their May highs.