NVIDIA Stock Jumps 3.5%: Elon Musk Backs Vera Rubin as NVDA Eyes $226 Breakout

Quick overview

NVIDIA (NASDAQ: NVDA) soared over 3.5% on Wednesday after Elon Musk revealed that SpaceX will exclusively construct its AI infrastructure on NVIDIA’s forthcoming Vera Rubin platform, dubbing it “the best AI computer.” The recognition pushed NVDA above $219, elevating its market capitalization to approximately $5.35 trillion. Investors doubled down on the AI leader ahead of earnings on August 26.

The announcement further consolidates NVIDIA’s dominance in AI infrastructure. While record demand from hyperscalers and Musk’s companies continue to support long-term growth, investors are more actively watching whether AI spending can sustain NVIDIA’s premium valuation.

Elon Musk Gives NVIDIA Another Major AI Win

NVIDIA received one of its strongest endorsements yet from Elon Musk during SpaceX’s first earnings call as a public company. Musk confirmed that SpaceX will build exclusively on NVIDIA GPUs, describing the company’s upcoming Vera Rubin architecture as “the best AI computer” currently available. He also revealed that SpaceX expects to receive a significant allocation of NVIDIA GPUs next year as it rapidly expands its AI infrastructure.

“Going forward, we’ve decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture; we think it’s the best AI computer,” Elon Musk said on the $SPCX earnings call. pic.twitter.com/cpcrzrBUol

— Yahoo Finance (@YahooFinance) August 4, 2026

SpaceX expects its computing capacity to exceed 2 gigawatts by the end of 2026 and move closer to 10 gigawatts during 2027, highlighting the enormous scale of future AI infrastructure demand. The announcement is particularly important because Musk’s ecosystem, including SpaceX, xAI and Tesla, represents one of the world’s fastest-growing AI compute customers.

For NVIDIA, the endorsement further consolidates its competitive lead over AMD, Intel, and custom AI chips being developed by hyperscale cloud providers.

AI Demand Continues Driving Record Financial Results

The positive narrative around NVIDIA is likely to continue as a result of their strong financial performance. Record revenue for the NVIDIA first quarter of fiscal 2027 was reported to be $81.6 billion, an 85% year-over-year increase and a 20% increase from the previous quarter.

Data Center revenue was $75.2 billion, or approximately 92% of total company revenue. This illustrates how completely NVIDIA has transformed to become the world’s preeminent supplier of AI infrastructure. Exceptional profitability has also been realized.

NVIDIA reported GAAP earnings per share of $2.39, while GAAP gross margin reached 74.9%, supported by continuing strong demand for Blackwell AI systems and enterprise AI deployments. Management is in anticipation of another record result, having projected potential revenue of approximately $91 billion, plus or minus 2%, for the fiscal second quarter to be announced on August 26, 2027.

Vera Rubin Becomes NVIDIA’s Next Growth Engine

Indeed, the data center revenue should remain steady and strong, but investor attention is likely to gradually shift toward Vera Rubin, NVIDIA’s next-generation AI platform. This past fiscal year, NVIDIA introduced the Rubin platform as the next big thing to target and jump on. The Rubin platform is a combination of Rubin GPUs, Vera CPUs, NVLink networking, BlueField DPUs and other sophisticated software, all integrated into comprehensive rack-scale AI systems that dramatically lower the

The deployment of major cloud providers such as Microsoft Azure, Google Cloud, Oracle Cloud Infrastructure and CoreWeave, while NVIDIA has also formed strategic partnerships focusing on Rubin, N. A. Safe SuperIntelligence (SSI), offers validation that Rubin has the potential to become the preferred platform of the next generation AI inference workloads.

Hyperscaler Spending Still Supports the Bull Case

With NVIDIA benefiting from enormous capital budget spending trends within the Cloud industry, major customers like Microsoft, Amazon, Alphabet and Meta, continue to spend billions of dollars each, on AI infrastructure constructs to support Generative AI, Enterprise Software and Cloud Computing. This latest funding trend suggests that hyperscaler capital spending could reach $673 billion by 2026, providing clear visibility for NVIDIA on future demand forecasting. 

However, the sharp increase in spending on AI infrastructure is beginning to be questioned by investors. Custom AI chips designed specifically for Cloud providers, tightly coupled U.S. export restrictions on China, not to mention the massive size of the hyperscaler funding initiative programs, are challenging areas of long term concern. 

Even though these are important issues, NVIDIA’s fully integrated ecosystem, from CUDA software to networking, CPUs, and GPUs, has created significantly higher switching costs that other companies have failed to achieve.

Valuation Remains the Biggest Debate Ahead of Earnings

Currently, with the shares valued close to $219, NVIDIA’s market capitalization has surpassed $5.3 trillion. Despite most semiconductor companies elevating valuations, investors continue to buy out the premium due to NVIDIA’s considerable revenue growth, industry-leading margins, and a robust competitive edge. 

The major driver of activity will be the results of Management’s second-quarter report, which will be released on August 26. The report will contain management’. Investors will be interested in estimates regarding NVIDIA’s revenue exceeding NVIDIA’s $91 billion outlook, whether gross margins remain near 75% and monitoring how quickly Vera Rubin production scales across hyperscale customers.

NVIDIA Technical Analysis: Rally Extends Above $218 as Bulls Target $226

NVIDIA is continuing to trade within a strong, bullish uptrend after completing a V-shaped recovery from the $188.85 swing low. The stock has now broken above the previous resistance at $211.86 and is now consolidating above $220. This is just above the 1.272 Fibonacci extension, at $218.12. 

The breakout has maintained the structure of the bullish trend and has the stock sitting comfortably above both the 50-period EMA ($207.80) and 100-period EMA ($204.54). These moving averages are turning higher and are dynamic support to the downside in the short-term. Momentum is strongly positive, and the RSI at 74 suggests the rally has entered the realm of overbought. 

This increases the likelihood of sideways consolidation before the next leg higher rather than signalling a reversal. A break and close above $226.05 would indicate a bullish trend remains intact as NVIDIA is trading above $218.12. Below $218.12 invalidates the bullish trend.

Key Levels

• Resistance: $226.05, $230.39, $234.88
• Support: $218.12, $211.86, $206.94

Trade Setup

• Entry: Buy on a confirmed close above $226.05
• Targets: $230.39, then $234.88
• Stop Loss: Below $218.12

The bullish trend remains intact while NVIDIA holds above $218.12, with a breakout above $226.05 likely to accelerate gains toward 230-235.

Frequently Asked Questions

Why is NVIDIA stock rising today?

NVIDIA’s stock is rising after Elon Musk announced that SpaceX would build its AI infrastructure exclusively with NVIDIA’s new Vera Rubin platform, thus strengthening market faith for the future demand of AI chips. 

What is Vera Rubin?

Vera Rubin is NVIDIA’s next-generation AI platform that will integrate GPUs, CPUs, networking and software into unified AI systems that will significantly reduce inference costs compared to the current Blackwell architecture.

When will NVIDIA report earnings?

NVIDIA is expected to release fiscal second-quarter 2027 earnings on August 26, 2026. Investors will be interested in revenue growth, gross margins, Blackwell demand and Vera Rubin deployment.

ABOUT THE AUTHOR See More

Arslan Ali Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Ali Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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