SpaceX's $40B Nvidia Debt Plan Tests Stock's 16% Rally

SpaceX (SPCX) is reportedly looking to raise $40 billion through debt to acquire Nvidia (NVDA) AI chips, according to the Financial Times. Over the past five days, the stock has risen approximately 15%.

Investors are now assessing a chip order funded by debt in the context of a rally that has pushed SpaceX's market capitalization to roughly $2.17 trillion.

Is $40 billion big enough to change SpaceX’s balance sheet?

According to Google Finance data, the proposed $40 billion raise represents approximately 1.8% of SpaceX's market cap.

Bank loans are expected to cover around $10 billion. The remaining $30 billion would be issued as investment-grade debt — bonds from borrowers with relatively safe ratings.

Asset manager Apollo Global Management (APO) is expected to lead the transaction and then sell the debt to other investors. Bond fund Pimco is also among the lenders currently in discussions.

The deal is not anticipated to be finalized until 2027, however.

Can SpaceX’s Nvidia buildout keep the stock climbing on debt?

According to Google Finance, SpaceX closed Tuesday at $171.92, a $23.29 rise over five days. Nonetheless, the shares are roughly 24% below their 52-week high of $225.64.

Musk stated last month that by December, xAI's Colossus 2 data center could operate more than double the number of Nvidia chips. He added that SpaceX intends to construct its data centers using exclusively Nvidia hardware.

Apollo already collaborates with Nvidia on AI financing. In August, Nvidia formed a partnership with Apollo and five other companies, such as BlackRock and KKR. Their platforms aim to direct over $500 billion toward AI initiatives.

Morgan Stanley projects that AI infrastructure will require $1.5 trillion in external funding by 2028. However, lenders and investors are becoming increasingly cautious about supporting it.

SpaceX's fundraising effort tests whether credit markets remain open to that demand. The stock's price may indicate whether equity holders are willing to accept the additional leverage.