TECHNOLOGY

Musk Confirms SpaceX Will Exclusively Use Nvidia Chips, AMD Crashes 9% After-Hours

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Advanced Micro Devices (AMD) shares plunged more than 8% in after-hours trading on August 5, 2026. The sharp decline occurred despite the company reporting record quarterly earnings, following a direct statement from SpaceX CEO Elon Musk regarding the company's hardware procurement strategy. During SpaceX's first post-IPO earnings call, Musk announced a definitive shift in the company's infrastructure roadmap. He stated that SpaceX would immediately cease all purchases of AMD semiconductor products. "Going forward, all of SpaceX's AI and computing service infrastructure will be built exclusively using Nvidia systems," Musk said on the call. The decision is tied to SpaceX's orbital AI satellite project, codenamed "Starmind." Musk confirmed that the company plans to optimize and deploy Nvidia's next-generation "Vera Rubin NVL72" architecture specifically for this initiative. He clarified that the Vera Rubin NVL72 design would be utilized not only for space-bound satellite systems but also for ground-based data centers supporting the constellation. Historically, SpaceX had been a significant customer of AMD. The company routinely purchased and deployed AMD semiconductors, including specialized processors from subsidiary Xilinx, for rocket flight control systems, onboard computing, and ground infrastructure. The immediate market reaction was severe. AMD stock dropped $46.61, or 8.99%, to $471.97 in after-hours trading. Conversely, Nvidia, receiving an unequivocal endorsement from one of the most prominent figures in technology, saw its stock rise $3.90, or 1.84%, to $215.84. SpaceX itself initially closed the regular trading session up 9.43% but reversed course sharply following the CEO's remarks, dropping 6.81% in after-hours trading. Separately, SpaceX released its second-quarter financial results alongside the call. Revenue reached $7.814 billion, up 92% year-over-year, beating analyst expectations of $6.93 billion. The company reported a net loss of $541 million, a significant improvement from a $1 billion loss in the same quarter last year. Starlink revenue accounted for $4.291 billion, a 66% increase, with the service reaching 12 million subscribers. The company's AI business revenue grew 247% to $2.561 billion. Capital expenditures for the quarter surged 550% year-over-year to $18.37 billion, with $15.83 billion allocated specifically to AI infrastructure. This total capex figure exceeded the average analyst estimate of $13.22 billion. CFO Johnson stated on the call that capital deployment efficiency remained high, adding that AI computing investments are currently projected to recoup their costs in less than one year.

Prepared by Jonathan Pierce and reviewed by editorial team.

Timeline of Events

· On May 2026, Musk said Tesla and SpaceX would likely buy both Nvidia and AMD chips.
· On July 2026, AMD shares declined sharply over AI company overextension fears.
· On July 2026, AMD stock slipped below $430 amid financing concerns.
· On July 2026, AMD announced partnership with Cerebras for Helios AI system.
· On July 2026, AMD announced $5 billion Anthropic investment as chip deal.
· On August 4, 2026, SpaceX held its first post-IPO earnings call.
· On August 4, 2026, AMD held its quarterly earnings call simultaneously.
· On August 4, 2026, Musk announced SpaceX will stop buying AMD chips.
· On August 4, 2026, AMD reported record quarterly revenue of $11.5 billion.
· On August 4, 2026, SpaceX reported Q2 revenue of $78.14 billion.
· On August 5, 2026, AMD shares plunged 8.99% in after-hours trading.
· On August 5, 2026, Nvidia shares rose 1.84% in after-hours trading.
· On August 5, 2026, SpaceX shares dropped over 6% in after-hours.
· On August 5, 2026, Musk confirmed exclusive Nvidia deal for all infrastructure.
· On August 5, 2026, SpaceX announced Starmind satellite AI project with Nvidia.
· On August 5, 2026, SpaceX and Nvidia confirmed joint satellite compute payload.
· SpaceX expects computing capacity to exceed 2GW by year-end.
· SpaceX plans to reach nearly 10GW computing capacity by late 2027.
· First Starmind AI satellites are scheduled to launch next year.
· AMD's Helios server rack shipments are expected in coming months.
· AMD faces potential headwinds if other companies follow Musk's lead.
· Nvidia's ecosystem lock-in may deepen through high-profile partnerships.

News Intelligence

Immediate US impact: AMD investors lost billions as Musk endorsed Nvidia exclusively.
Possible long-term US impact: Nvidia's AI dominance may strengthen while AMD's growth narrative weakens.
Most affected groups: AMD investors, SpaceX suppliers, semiconductor industry analysts, AI infrastructure competitors.
What readers should prioritise: Verify earnings details, market reactions, and official company statements directly.