Yorkville Ives Maintains Outperform on SpaceX, $225 Price Target

Yorkville Ives analyst Dan Ives reiterated an Outperform rating and $225 price target on SpaceX (NASDAQ: SPCX)

“SpaceX is in talks to raise roughly $40 billion of debt to buy Nvidia chips for its AI data centers, according to media reports.

The package would be led by Apollo Global Management and consist of about $10 billion of bank loans and $30 billion of investment-grade debt, with PIMCO among the lenders in talks, and it is expected to close in 2027.

The talks are at an early stage and SpaceX has not confirmed them, so terms and timing could still change.

The financing would be among the largest ever raised for AI infrastructure and extends a relationship that already runs in both directions: Apollo financed two Nvidia-cluster deals of roughly $3.5 billion each for xAI earlier this year, Nvidia holds a stake in SpaceX worth about $21 billion, and Musk has said SpaceX data centers will be built exclusively on Nvidia hardware, with the chip count at Colossus 2 set to more than double by December.

We view this as a smart strategic move for the SpaceX buildout because it fuels the flywheel between launch, Starlink, and AI: each business lowers the cost or expands the demand of the other two, and the AI segment is where the next leg of growth comes from as contracted cloud capacity converts into revenue.

In this AI Arms Race it’s clear Musk needs to move quickly and this move will be received well by investors given the cloud data AI buildout on the horizon for SpaceX.

The constraint on that segment is supply, not demand, so the question has always been how quickly SpaceX can bring compute online and how it pays for it.

Locking in Nvidia chip supply with debt rather than equity is the capital-efficient answer: it avoids returning to the equity market four months after the June IPO, it funds capacity that is being contracted ahead of delivery and begins generating revenue as soon as it is energized, and it turns a bottleneck into a scheduled build.

The debate is whether a company this early in its public life should carry that much leverage.

We think the contracted backlog in AI and the cash generation of Starlink give SpaceX the capacity to service it, and we would rather see this compute financed and deployed than deferred.

We maintain our OUTPERFORM rating and $225 price target,”

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