Key Takeaways
- Following SpaceX’s Nasdaq listing, Lynx Equity identifies Nvidia as the superior investment opportunity
- Nvidia chip demand expected to surge as xAI scales operations through Terafab and expanded AI infrastructure
- Google maintains a three-year GPU rental agreement with xAI providing access to approximately 110,000 Nvidia chips
- Additional beneficiaries include memory and storage companies such as Micron, Seagate, and Western Digital
- Lynx establishes $250 price target for Nvidia; Street consensus projects $311.41 average target
The real beneficiary of SpaceX’s public market debut might not be SpaceX at all — it could be Nvidia (NVDA). This is the perspective from Lynx Equity, which released an analysis Monday suggesting that investors seeking exposure to the SpaceX narrative should consider Nvidia as the more attractive opportunity.
While SpaceX captured significant attention with its Nasdaq listing last week, Lynx Equity is directing investor focus toward alternative opportunities.
Nvidia currently trades near $204, representing potential upside to Lynx’s $250 valuation target. The research firm emphasizes that Nvidia’s valuation metrics appear more attractive than SpaceX’s, while offering business fundamentals that are “considerably more tangible.”
The investment thesis centers on xAI. According to Lynx, SpaceX’s market value demonstrates strong correlation with Elon Musk’s artificial intelligence venture, and as xAI expands its operations — especially through initiatives like Terafab — computing power requirements will accelerate substantially.
This translates directly into increased demand for Nvidia’s chip technology.
Google’s GPU Rental Agreement Strengthens Investment Rationale
Lynx emphasized one particularly compelling detail: xAI maintains a three-year GPU rental contract with Google providing access to approximately 110,000 Nvidia chips. This agreement creates a direct revenue stream supporting Nvidia’s financial outlook.
The firm also observed that this arrangement helps constrain Google Cloud Platform’s capital expenditure requirements, which benefits Alphabet’s bottom line.
The infrastructure expansion extends beyond graphics processors. Lynx anticipates that accelerating AI infrastructure investment will create favorable conditions for memory and storage sector companies. Micron, SanDisk, Seagate, and Western Digital were identified as companies positioned to benefit.
Western Digital has delivered exceptional performance — climbing more than 900% over the past year. The stock currently trades at $562.92 with a market capitalization of $194 billion. The company exceeded Q3 2026 earnings expectations, delivering EPS of $2.72 versus the $2.36 consensus estimate, while revenue reached $3.34 billion compared to the $3.23 billion projection.
Semiconductor Equipment Manufacturers Positioned for Growth
Lynx’s analysis extended beyond chip designers. The firm identified semiconductor equipment manufacturers as potential winners if chipmakers increase production capacity to satisfy AI-driven demand.
Lam Research, Applied Materials, ASML, and KLA all received mentions in the research note.
Intel also appeared in the analysis. Lynx views the company as another beneficiary of the expanding AI infrastructure landscape, alongside Nvidia.
Across Wall Street, Nvidia maintains a Strong Buy rating consensus derived from 37 Buy recommendations, one Hold rating, and one Sell rating accumulated over the previous three months.
The consensus 12-month price target stands at $311.41, suggesting approximately 52% upside potential from present trading levels.
While Lynx’s $250 target falls below the Street’s average forecast, the firm’s investment case focuses less on immediate price appreciation and more on identifying superior risk-reward dynamics — specifically Nvidia compared to a newly public SpaceX carrying a valuation heavily dependent on projected future expansion.
Western Digital separately disclosed the incorporation of post-quantum cryptography capabilities into its Ultrastar UltraSMR hard disk drive products, which are presently undergoing qualification processes with several hyperscale clients.
