Nvidia's stock booked its best week in more than a year, adding $562 billion in market value after SpaceX chief Elon Musk said his company will build exclusively on Nvidia's chips. Rising Big Tech capital spending and warnings of a widening GPU supply gap also shaped the rally ahead of Nvidia's own earnings later this month.
Nvidia notches its best week in over a year
Nvidia's stock closed 2.3% higher on Friday, rounding out a week in which shares climbed 11.6%. That is the steepest five-day gain since a 16.1% increase in May 2025, according to Dow Jones Market Data.
The rally added $562 billion to Nvidia's market capitalization this week, the chip maker's largest-ever weekly gain on record, the data showed.
Musk's exclusivity pledge lit the fuse
Two developments drove the move. First, SpaceX chief executive Elon Musk called Nvidia's upcoming Vera Rubin chip architecture the best AI computer available, during SpaceX's first-ever earnings call Tuesday, and said the company has "decided to build exclusively on Nvidia" going forward.
Musk added that SpaceX expects to receive a very significant percentage of Nvidia's GPU output next year, when it plans to install close to 10 gigawatts of compute capacity.
Hyperscaler spending had already lifted shares
Before SpaceX reported, Google, Amazon and Meta had guided their capital expenditures higher for the year. Kate Leaman, chief market analyst at AvaTrade, told MarketWatch that hyperscaler AI spending is now the bigger story, adding that Nvidia remains the top supplier of GPUs. Willy Lee, a principal at Neostellar, said Google's first bout of quarterly negative free cash flow spooked investors, but Microsoft's more measured approach to capex reassured them.
With Nvidia's own earnings due later this month, Leaman said some traders are already positioning ahead of the report — though expectations are high enough that a pullback is possible.
Analysts flag a widening GPU supply gap
BNP Paribas analyst Stefan Slowinski said Musk's remarks raise the question of whether GPU availability could again constrain AI-infrastructure deployments over the next 12 to 18 months, creating both risk and opportunity. Providers without a strong Nvidia relationship could fall behind, he said, while CoreWeave, Nebius Group and Oracle are best placed to receive a meaningful share of chips if shortages emerge — though Nvidia could still prioritize its SpaceX ties.
Slowinski added that SpaceX's suggestion that memory output is growing about 20% a year against AI demand growing at a 200% clip supports the view that supply is still severely lagging demand.
Source: MarketWatch.com
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