SpaceX stock (NASDAQ: SPCX) slipped after hours on Tuesday after the Financial Times reported that Elon Musk’s company is seeking $40 billion of financing to buy Nvidia AI chips.
The proposed package would include about $10 billion of bank loans and $30 billion of investment-grade debt, led by Apollo Global Management, with the transaction expected to close in 2027.
SpaceX stock fell about 1% after the report. Investors are asking whether AI revenue can arrive quickly enough to justify the spending.
Should SPCX investors worry about the $40B Nvidia financing?
The Financial Times said Apollo is expected to lead the financing, while Pimco is among potential lenders. SpaceX recently secured investment-grade credit ratings, widening the pool of institutions able to buy its debt.
The package would arrive after an already sharp rise in borrowing. SpaceX reported $38.4 billion in debt and $1.1 billion in finance-lease liabilities as of June 30, according to its latest quarterly filing. It also held roughly $100 billion of cash and marketable securities.
Evercore estimates SpaceX could spend nearly $53 billion on AI infrastructure in the second half of 2026, roughly 70% above consensus expectations.
Evercore nevertheless remains constructive. In commentary reported by Yahoo Finance, the firm said investors with a 2027 horizon who remain bullish on AI compute demand should consider buying the shares.
The balance sheet can absorb heavy investment, but the capital intensity leaves less room if utilisation or demand disappoints.
Why SpaceX thinks Nvidia chips can justify the borrowing
SpaceX is willing to finance Nvidia chips aggressively because analysts think AI compute could become one of its largest businesses.
Musk has said SpaceX intends to build its AI data centres around Nvidia hardware, while Colossus 2 is expected to expand materially.
Evercore estimates AI Solutions and Infrastructure revenue could reach about $83 billion in 2027, compared with roughly $47 billion in consensus estimates.
Goldman Sachs analyst Eric Sheridan recently raised his SpaceX price target to $230 from $220. He maintained a Buy rating, citing stronger expectations for AI capacity, revenue and margins as enterprise demand grows.
If those forecasts prove accurate, the borrowing looks less like balance-sheet stress and more like an attempt to secure scarce computing capacity.
SpaceX stock valuation leaves little room for an AI miss
TD Cowen analyst John Blackledge described SpaceX as facing “an unprecedented set of AI and space-related opportunities” but warned that they “may take longer to materialize in the P&L.”
That timing issue is crucial.
TD Cowen expects AI compute-leasing revenue to rise from about $14 billion in 2026 to $66 billion in 2027 and $133 billion in 2028, eventually becoming SpaceX’s largest revenue source.
Those estimates imply a dramatic payoff, but only after enormous capital expenditure. SpaceX must absorb interest expense, depreciation and continued infrastructure spending before much of the projected revenue reaches the income statement.
The company is not facing an obvious liquidity crisis. Its June balance sheet showed substantial cash, and the proposed investment-grade financing spreads funding across longer-dated institutional debt.
The stock’s roughly 1% after-hours decline suggests investors noticed the risk without treating it as a fundamental break in the thesis.
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