Elon Musk's Newest Data Center 'Moonshot' Could Send NVIDIA Shares to $500. It Could Also Crash the Stock. - 24/7 Wall St.

At $218.10, NVIDIA trades in a range where risk and reward are closely balanced. As the designer of the accelerated computing platform powering most frontier AI models, NVIDIA dominates the data cente... Read original →

NVIDIA's dominance in AI chips is being leveraged into a high-stakes gamble. Musk’s SpaceX data center expansion, if realized, could propel NVIDIA’s stock toward $500, but hinges on a $500B financing deal and massive capital expenditure. This move will intensify demand for upstream EUV lithography and 3nm nodes, while straining downstream data center infrastructure. A funding shortfall or reduced orders from hyperscalers could trigger a sharp valuation correction. Competitors like AMD are accelerating AI factory investments, increasing market fragmentation. Meanwhile, U.S. export controls on semiconductor tech to China are tightening, constraining global expansion. If SpaceX proceeds, NVIDIA may see a revaluation, but current market expectations are already priced in, heightening near-term volatility.