Elon Musk and SpaceX Just Delivered Incredible News to Nvidia That Could Help the Stock Double in the Next Year
2026-10-26 07:15
•Geoffrey Seiler •The Motley Fool
••••• ••• Axe Cap view
SpaceX’s AI Bet Boosts Nvidia, What It Means for SA Investors
SpaceX’s huge AI infrastructure plan lifts Nvidia but raises questions for rand-linked portfolios.
SpaceX’s announcement to ramp up AI infrastructure spending using Nvidia's latest chips is a bold move shaping global tech. Nvidia could see revenues soar, possibly doubling its stock price if these plans turn out. For South African investors, direct exposure to this surge is limited since Nvidia isn’t JSE-listed. Instead, watch USD/ZAR closely. A stronger dollar from surging US tech stocks often puts pressure on the rand, which could make local assets, especially import-heavy sectors like retailers or tech-dependent firms, more expensive. On the flip side, resource counters like AngloGold Ashanti or Sasol might benefit as a weaker rand boosts their dollar-priced earnings. This call leans bearish on the rand but bullish selective on miners. The main risk is if global inflation ticks up and the Fed tightens more aggressively, putting brakes on tech growth and dollar strength, which could stabilize or even strengthen the rand unexpectedly. this is just our opinion and not financial advice
Trim rand exposure by reducing positions in highly import-reliant sectors. Consider modest exposure to AngloGold Ashanti and Sasol to hedge against rand weakness and inflation. Avoid chasing Nvidia-related plays directly without USD exposure.
- USD/ZAR
- AngloGold Ashanti
- Sasol
- Aggressive Fed hikes slowing tech demand
- Sudden rand strength from local factors
6/10
SpaceX announced plans to aggressively expand AI infrastructure spending, targeting 10-20 gigawatts of additional computing capacity in 2027 using Nvidia's Vera Rubin chips exclusively. This could generate $400-800 billion in revenue for Nvidia, potentially increasing its fiscal 2028 revenue to $850 billion and doubling the stock price to $415-580.
Our take is based on reporting first published by The Motley Fool.