Analyst Gene Munster called compute oversupply fears “off base,” highlighting profitable growth in SpaceX’s Super Intelligence business.
Analyst Gene Munster called compute oversupply fears “off base,” highlighting profitable growth in SpaceX’s Super Intelligence business.
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Musk said SpaceX could rent out its compute “several times over,” speaking about relentless customer demand and difficulty finding spare capacity.
ARK analyst Brett Winton flagged rising contract renewals as bullish for providers able to deploy GPUs quickly.
Musk outlined 13 GW of compute by year-end 2027, above ARK’s forecast of less than 8 GW.
CoreWeave (CRWV), Nebius (NBIS) and major AI infrastructure stocks climbed overnight late Tuesday as SpaceX’s strong compute demand prompted analysts to challenge oversupply fears and highlight rising rental rates and a faster-than-expected capacity expansion.
CRWV rose 5% and NBIS climbed 6% overnight, while Nvidia (NVDA) and ASML (ASML) each gained 2% and Intel (INTC) advanced 4%.
SpaceX’s Compute Demand Runs Ahead Of Supply
“We are also, frankly, hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute,” Musk said on the latest SpaceX earnings call. “We could rent out our compute several times over if we said yes to everyone.”
SpaceX has encountered the shortage itself. Musk said efforts to shift inference workloads elsewhere and free up capacity for training hit the same wall across GB300s, GB200s, TPUs, Trainiums and older H100s: no availability. He compared the search to Monty Python’s cheese-shop sketch — a shop with plenty of varieties to ask for, but no cheese to sell. “It is ridiculous. I do not think we are going to have a demand issue here,” Musk said.
Averytin News Financial update.