SPCX Stock Climbs Overnight: Jim Cramer Says SpaceX Could Become Nvidia's Largest Customer, Ives Backs $40B Chip Financing Deepti Sri Wed, October 7, 2026 at 11:18 PM EDT 5 min read SPCX -2.51% NVDA -0.74% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
SpaceX reportedly seeks $40 billion for Nvidia chips, with Apollo expected to lead financing and PIMCO among potential lenders.
Dan Ives maintained an 'Outperform' rating and $225 target, backing debt-funded AI expansion without another equity raise.
Musk's expanding Nvidia chip fleet contrasts with debt-market concerns, as SpaceX's default-protection costs hit a record on Wednesday.
Shares of Space Exploration Technologies Corp (SPCX) climbed 0.5% overnight heading into Thursday, as CNBC host Jim Cramer said that Elon Musk's company could become Nvidia's largest customer, while Yorkville Ives analyst Dan Ives backed a reported $40 billion financing plan to expand its AI computing business.
SPCX stock fell nearly 3% on Wednesday to $167.6, snapping three straight sessions of gains.
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"SpaceX could end up being Nvidia's largest client at this pace. That's fantastic news for both sides," Cramer said Wednesday on CNBC's "Mad Money." He argued that buying additional chips could allow SpaceX to expand a computing business already serving customers including Alphabet's Google and Anthropic. "Why not [do it]? Musk can immediately monetize these chips," he said.
On Wednesday, after the Financial Times reported that SpaceX was seeking $40 billion in debt financing to buy Nvidia chips for its AI data centers, Cramer said on X that the company could soon generate $3 billion to $4 billion a month by renting out computing capacity.
Cramer also pointed to Goldman Sachs' decision to raise its SpaceX price target to $230 from $220, while maintaining a 'Buy' rating. The new target implies a 37% upside from Wednesday's close and exceeds the stock's June record high of $225.64. "The $10 bump from $220 to $230 ratified their previous $220 figure," he said, arguing that the increase boosted the credibility of Goldman's earlier valuation.
Meanwhile, Ives reiterated an 'Outperform' rating and $225 price target, calling the reported financing a "smart strategic move." His target implies a 34% upside from current levels.
The analyst said additional Nvidia hardware would help SpaceX convert contracted cloud capacity into revenue, while borrowing would avoid another equity raise just months after its June IPO.
"The constraint on that segment is supply, not demand, so the question has always been how quickly SpaceX can bring compute online and how it pays for it," he said. Ives acknowledged questions about taking on substantial leverage so early in SpaceX's public-market history.
However, he argued that Starlink's cash generation and contracted AI business could support repayments. "We would rather see this compute financed and deployed than deferred," he added.
SpaceX is reportedly seeking $10 billion in bank loans and $30 billion in investment-grade bonds to fund Nvidia chip purchases. Apollo Global Management (APO) is expected to lead and arrange the financing, with PIMCO among potential lenders in discussions. Closing is expected in 2027, although talks remain preliminary and SpaceX has not confirmed the plan.
CNBC also noted that the financing would likely use the GPUs as collateral and rely primarily on the investment-grade debt market. Participating lenders have yet to be finalized. The proposed deal would follow a $25 billion bond sale two weeks after SpaceX's June IPO.
Ives pointed to existing ties among the companies: Apollo financed two Nvidia-cluster deals for xAI earlier this year worth about $3.5 billion each. He also valued Nvidia's stake in SpaceX at about $21 billion.
The proposed purchases would expand the computing infrastructure SpaceX inherited through its February absorption of xAI. Musk said in August that SpaceX had decided to build exclusively on Nvidia, with a significant allocation of Vera Rubin GPUs expected next year.
By last month, Colossus and Colossus 2 were running a combined 780,000 Nvidia chips, according to Musk, who had outlined potential additions totaling 660,000 GB300 chips through late December. Google agreement payments are scheduled to hit $920 million a month in October, while Anthropic agreed to use Colossus 1.
But the borrowing plans unsettled debt investors. SpaceX's five-year credit default swap spread, a measure of default-protection costs, apparently hit a record 194 basis points on Wednesday, up from around 110 basis points when trading began in June. The premium investors demanded to hold its 2056 bonds over Treasuries also widened to 2.36 percentage points, from 1.75 percentage points in June.
On Stocktwits, retail sentiment for SPCX has been 'bullish' over the past week amid 'high' message volume.
One user said, "Near term, SpaceX is a Starlink annuity bolted to the most expensive neocloud on the planet. Long term, it is a wager that Starship collapses the cost of mass to orbit and turns low Earth orbit into the next data center."
Another user said, "$SPCX There are no shortage of banks and corporate debt buyers that believe in AI boom."
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Deepti Sri has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
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