Quick Read
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Tesla (TSLA) disclosed a $2B investment in SpaceX equity and a partnership to build the largest chip fab for vertically integrated semiconductor manufacturing at Gigafactory Texas, with shares up 25% over the past year. NVIDIA (NVDA) reported Q1 FY2027 revenue of $81.61B, up 85% year over year, with $119.0B in total supply-related commitments. Microsoft (MSFT) posted Q3 FY2026 commercial RPO of $627B and an AI business at a $37B annualized run rate, up 123% year over year. Alphabet (GOOGL) guided 2026 CapEx of $175-185B with Google Cloud backlog above $460B. Equinix (EQIX) trades at a forward PE of 61 with 25 analyst Buy or Strong Buy ratings and is up 42% year to date.
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On a recent All-In Podcast episode dissecting SpaceX’s S-1 filing, guest investor Gavin Baker and the hosts framed Elon Musk’s privately held rocket and connectivity empire as something more ambitious than a high-growth tech company. David Friedberg argued that “having a space-based communication network, space-based data centers, and space-based communication back down to Earth wireless” creates “a backup for civilization” that governments cannot control. That framing is the philosophical core of the bull case for a $2 trillion valuation, and it matters for every public company building the terrestrial side of the AI stack.
The $2 Trillion Math
Those raw S-1 numbers give the entire investment pitch real teeth. SpaceX generated a massive $18.674 billion in consolidated 2025 revenue, with its powerhouse Starlink Connectivity segment pulling in $11.4 billion of that total and printing a $4.4 billion operating profit. For Q1 2026, consolidated revenue held strong at $4.694 billion with Adjusted EBITDA tracking at $1.127 billion. Chamath Palihapitiya’s bullish take on the All-In Podcast has SpaceX setting the tone for a $2 trillion IPO valuation, which looks incredibly achievable once you bake in their exponential, multi-segment forward run rates.
The wild AI angle is what bridges pure science fiction directly to a Wall Street spreadsheet. SpaceX officially absorbed xAI back in February 2026, forming a heavy-hitting third operating segment alongside Space and Starlink. Their newly disclosed compute deal with Anthropic, paying a mind-boggling $1.25 billion every single month for access to the Colossus supercomputer clusters, validates this tech stack instantly, turning their AI division into a massive, multi-billion-dollar annual revenue machine.
Execution Edge: The 66-Day Data Center
Baker noted SpaceX has compressed its data center build time from 122 days to 66 days, dramatically faster than competitors. Cursor’s Composer 2.5 model reportedly became “Pareto dominant” after just three to four weeks of reinforcement learning on SpaceX’s Colossus 2 cluster, with allegedly more tokens of coding data than exist on the public internet. SpaceX itself argues that “the key constraints in the continued growth of AI are physical” and that no other AI company has better control over the full physical stack.
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The Tesla Bridge
Tesla (NASDAQ:TSLA) is the public-market proxy. Tesla disclosed a $2 billion investment in SpaceX equity and a partnership to build the largest chip fab for vertically integrated semiconductor manufacturing at the Gigafactory Texas campus, per the company’s Q1 FY2026 8-K filing. Tesla shares closed at $426.01 on May 22, up 25% over the past year, with Polymarket assigning a 92% probability that SpaceX will carry a higher valuation than Tesla by June 30, 2026.
What It Means For The AI Infrastructure Trade
The hyperscaler CapEx race is the backdrop. NVIDIA (NASDAQ:NVDA) reported Q1 FY2027 revenue of $81.61 billion, up 85% year over year, with total supply-related commitments of $119.0 billion. Microsoft (NASDAQ:MSFT) posted Q3 FY2026 commercial RPO of $627 billion and an AI business at a $37 billion annualized run rate, up 123% year over year. Alphabet (NASDAQ:GOOGL) guided 2026 CapEx of $175 to $185 billion, with Google Cloud backlog above $460 billion.
If Musk’s orbital compute layer delivers on Friedberg’s framing, every dollar Big Tech is committing to terrestrial racks becomes more competitive, not less. Equinix (NASDAQ:EQIX) sits at the center of that terrestrial layer. Equinix carries a $105.5 billion market cap, trades at a forward PE of 61, and has 25 analyst Buy or Strong Buy ratings against six Holds or Sells. The stock is up 42% year to date through May 22.
Investor Takeaway
If you’re looking to play this, remember that SpaceX is still private, so you have to look at the public markets for an indirect trade. Here is the big takeaway for investors: if that eye-popping $2 trillion valuation pitch is even halfway right, the massive AI infrastructure spending we’re seeing at NVIDIA, Microsoft, Alphabet, and Equinix isn’t the peak, it’s just the opening chapter of a massive buildout where space and ground tech supercharge each other.
Moving forward, you’ll want to watch three things closely: how deeply Tesla and SpaceX integrate their tech, how that massive Anthropic compute partnership plays out, and whether Elon Musk can actually maintain his wild 66-day construction cadence as the satellite constellation scales up.
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
