Elon Musk’s SpaceX (NASDAQ:SPCX) is rapidly evolving beyond a rocket-and-satellite company, with its artificial intelligence ambitions creating a new way for investors to play the Nvidia Corp. (NASDAQ) AI boom.
SpaceX is reportedly seeking $40 billion in financing to buy Nvidia chips, including about $10 billion in bank loans and $30 billion of investment-grade debt, as it accelerates its AI data-center buildout.
Jim Cramer has suggested SpaceX could generate $3 billion-$4 billion a month from renting out computing capacity.
Cramer said SpaceX could eventually become Nvidia’s largest customer, underscoring how closely Musk’s AI strategy could become tied to Nvidia’s growth.
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Nvidia Could Be a Major Beneficiary
SpaceX’s planned AI expansion and search for Nvidia chips could create another major source of demand for Nvidia’s data-center business. SpaceX is targeting an increase in computing capacity from about 1.4 gigawatts to 15 GW by the end of 2027.
The proposed spending comes as Nvidia is already benefiting from a broader surge in AI infrastructure investment. A larger SpaceX order would add to that demand while potentially making the Musk-led company one of Nvidia’s largest customers.
For ETF investors looking for Nvidia exposure, several funds have substantial allocations to the chipmaker. The VanEck Semiconductor ETF (NASDAQ:SMH) holds Nvidia at roughly 19.5% of its portfolio, making it one of the largest Nvidia-weighted diversified semiconductor ETFs.
The Strive U.S. Semiconductor ETF (NYSE:SHOC) had an even higher Nvidia weighting of about 22.1%. Other technology ETFs also have sizable Nvidia positions, including the Fidelity MSCI Information Technology Index ETF (NYSE:FTEC) at roughly 17.6%, the Vanguard Information Technology ETF (NYSE:VGT) at 17.7% and the iShares U.S. Technology ETF (NYSE:IYW) at 17.4%.
That creates an interesting split for ETF investors: SpaceX-focused funds offer exposure to Musk’s AI infrastructure expansion, while semiconductor and technology ETFs provide exposure to Nvidia as the potential supplier powering that expansion.
The ETF Trade Around Musk’s Space Bet
For ETF investors, the development creates a relatively new way to trade SpaceX.
The Direxion Daily SpaceX Bull 2X ETF (NYSE:LOFF) seeks twice the daily performance of SpaceX shares, before fees and expenses. Its inverse counterpart, Direxion Daily SpaceX Bear 2X ETF (NYSE:LOFD), seeks twice the opposite daily performance. The funds launched in June 2026, giving investors direct leveraged exposure to SpaceX without owning the underlying shares.
For concentrated SpaceX exposure, Global X Space Tech ETF (NASDAQ:ORBX) holds SpaceX at a 25% weight, VanEck Space ETF (NASDAQ:WARP) dedicates 22% to SpaceX, and VegaShares Space & AI ETF (NASDAQ:XSPC) has 17.7% of its portfolio dedicated to the stock.
For investors seeking broader exposure, the ERShares Private-Public Crossover ETF (NASDAQ:XOVR) holds SpaceX alongside publicly traded technology companies. Nvidia is currently its largest holding at 9.54%, while SpaceX accounted for 2.64%.
The ARK Next Generation Internet ETF (BATS:ARKW) also holds SpaceX, with the private company representing roughly 4.5%.
The Bottom Line
SpaceX’s $40 billion Nvidia spending plan could turn Musk’s latest AI ambition into a two-sided ETF story. Investors can gain exposure to the potential growth of SpaceX through funds such as LOFF, XOVR and ARKW, while Nvidia-focused ETFs offer a way to play the chipmaker that could supply the infrastructure behind Musk’s expansion.
The bigger question is whether SpaceX can turn its massive AI infrastructure buildout into a profitable business. If it succeeds, Nvidia stands to benefit from billions of dollars in additional chip demand, while SpaceX could emerge as a significant new AI infrastructure player.
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