SpaceX (NASDAQ:SPCX) shares slipped in after-hours trading Tuesday following a Financial Times report that the company is seeking $40 billion in financing to purchase Nvidia AI chips. The proposed package is said to include roughly $10 billion in bank loans and $30 billion in investment-grade debt, with Apollo Global Management expected to lead the transaction, which could close in 2027.
The stock fell about 1% after the news, reflecting investor caution over whether the massive spending will translate into revenue quickly enough to justify the debt. The financing would add to SpaceX's already substantial borrowing, which stood at $38.4 billion in debt and $1.1 billion in finance-lease liabilities as of June 30, according to the company's latest quarterly filing. SpaceX also held approximately $100 billion in cash and marketable securities, providing a buffer.
AI Infrastructure Spending Accelerates
Evercore analysts estimate SpaceX could spend nearly $53 billion on AI infrastructure in the second half of 2026, roughly 70% above consensus expectations. Despite the heavy capital outlay, Evercore remains constructive, noting that investors with a 2027 horizon who are bullish on AI compute demand should consider buying the shares. The balance sheet can absorb the investment, but the capital intensity leaves less room for error if utilization or demand disappoints.
Why SpaceX Is Borrowing for Nvidia Chips
SpaceX's willingness to finance Nvidia chips aggressively stems from expectations that AI compute could become one of its largest businesses. CEO Elon Musk has indicated that SpaceX's AI data centers will be built around Nvidia hardware, with the Colossus 2 expansion expected to be significant. Evercore projects 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 price target on SpaceX to $230 from $220, maintaining a Buy rating. He cited 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.
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, given its substantial cash position and the proposed investment-grade financing, which 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. The market will be watching closely to see if AI revenue materializes as quickly as the company and analysts expect.
This article is for informational purposes only and does not constitute financial advice.
