NVIDIA Holds $21 Billion in SpaceX Equity, Stock Value Shrinks to $17.2 Billion

According to CNBC, on Friday (14th), NVIDIA (NVDA-US) revealed in a filing with the U.S. Securities and Exchange Commission (SEC) that it held approximately $21 billion in equity of SpaceX (SPCX-US), the company led by Elon Musk, as of the end of the second quarter.

The chipmaker stated in its SEC filing that it owns 122.8 million shares of SpaceX's Class A common stock. SpaceX officially began trading on the public market in June of this year.

SpaceX's stock closed at $140 on Friday, down from $170.86 at the end of June. As a result, the market value of NVIDIA's SpaceX shares has now dropped to approximately $17.2 billion based on the current stock price.

This is NVIDIA's second-largest equity holding, surpassed only by its stake in Intel (INTC-US). Currently, the market value of NVIDIA's Intel shares is about $22 billion, down from $30 billion at the end of Q2. Compared to the $5 billion invested less than a year ago, this investment has already generated substantial returns.

According to FactSet data, NVIDIA is the sixth-largest investor in SpaceX. Elon Musk himself is the largest shareholder, with a stake valued at approximately $850 billion, far ahead of others. Alphabet (GOOGL-US) ranks second with a stake valued at about $78 billion.

Sources indicate that NVIDIA's SpaceX shares originated from its $10 billion investment in xAI in January this year, which was part of xAI's $20 billion fundraising round. SpaceX acquired xAI in February at a valuation of $1.25 trillion.

Earlier this month, during SpaceX's Q2 earnings call, Musk stated that the company's AI data centers will fully utilize NVIDIA chips. He praised NVIDIA's GPUs for having the 'best architecture' for AI model training and inference, as well as for related products and services.

Musk also mentioned on the call that he expects SpaceX to receive a 'large allocation' of NVIDIA's upcoming Vera Rubin GPU next year.