TLDR
- Lynx Equity says Nvidia is a better investment than SpaceX following its Nasdaq debut
- xAI’s expansion via Terafab and larger AI systems will drive demand for Nvidia chips
- xAI has a three-year GPU rental deal with Google covering ~110,000 Nvidia chips
- Memory and storage names like Micron, Seagate, and Western Digital also flagged as beneficiaries
- Lynx sets a $250 price target on Nvidia; Wall Street consensus average target is $311.41
Nvidia (NVDA) may be the biggest winner from the SpaceX IPO — and it didn’t even go public. That’s the call from Lynx Equity, which published a note Monday arguing that Nvidia offers a smarter entry point into the SpaceX story than SpaceX itself.
SpaceX made its Nasdaq debut last week and quickly grabbed market attention. But Lynx is pointing investors elsewhere.
Nvidia is trading around $204 based on the implied upside in Lynx’s $250 price target. The firm says Nvidia’s valuation multiple is lower than SpaceX’s, and its business prospects are “considerably more tangible.”
The core of the argument is xAI. Lynx believes SpaceX’s valuation is most closely tied to Elon Musk’s AI company, and as xAI scales up — particularly through projects like Terafab — it will need a lot more computing power.
That means more Nvidia chips.
xAI’s GPU Deal With Google Adds to the Case
One concrete data point Lynx highlighted: xAI has a three-year GPU rental agreement with Google that gives it access to roughly 110,000 Nvidia chips. That deal directly supports Nvidia’s revenue pipeline.
Lynx also noted that the arrangement helps limit Google Cloud Platform capital expenditure, which supports Alphabet’s profitability.
The buildout doesn’t stop at GPUs. Lynx expects rising AI infrastructure spending to lift memory and storage companies too. Micron, SanDisk, Seagate, and Western Digital were all flagged as potential beneficiaries.
Western Digital has had a remarkable run — up over 900% in the past year. It’s currently trading at $562.92 with a market cap of $194 billion. The company recently beat Q3 2026 earnings estimates, posting EPS of $2.72 against a forecast of $2.36, with revenue of $3.34 billion topping the $3.23 billion estimate.
Chip Equipment Makers Also in the Frame
Lynx didn’t stop at chip designers. The firm also flagged semiconductor equipment companies as potential beneficiaries if chipmakers ramp production to meet AI demand.
Lam Research, Applied Materials, ASML, and KLA were all mentioned in the note.
Intel also got a mention. Lynx sees it benefiting from the broader AI infrastructure buildout, alongside Nvidia.
On Wall Street more broadly, Nvidia holds a Strong Buy consensus based on 37 Buy ratings, one Hold, and one Sell over the past three months.
The average 12-month price target sits at $311.41, implying around 52% upside from current levels.
Lynx’s own target of $250 is below the Street average, but the firm’s thesis is less about near-term price and more about where the smarter risk-reward sits — Nvidia versus a freshly listed SpaceX with a valuation built heavily on future growth.
Western Digital, for its part, also recently announced the integration of post-quantum cryptography into its Ultrastar UltraSMR hard disk drives, which are currently being qualified by multiple hyperscale customers.
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