Gotrade News - AI chip stocks remain at the center of investor attention, with Nvidia (NVDA) quoted at $228.87, up 0.66%, and Advanced Micro Devices (AMD) gaining 1.34% to $623.77, according to The Motley Fool. The debate has shifted from whether AI spending continues to which part of the chip market captures the next wave of demand.
That question sharpened after Elon Musk committed SpaceX to building its AI infrastructure exclusively on Nvidia hardware, a move The Motley Fool described as "a big coup" for the chipmaker. Meanwhile, AI software name Palantir Technologies (PLTR) is trading near the top of its recent range after a strong run from its June lows.
SpaceX Goes Exclusive on Nvidia Vera Rubin
As reported by Yahoo Finance, Musk told investors on SpaceX's first earnings call in early August that the company is "exclusive to Nvidia," calling the Vera Rubin architecture "the best AI computer." Nvidia shares rose more than 4% on the news, while SpaceX stock initially fell more than 10% before recovering.
The scale of the commitment is significant. Per Yahoo Finance, SpaceX expects to end the year with more than 2 gigawatts of compute and is targeting roughly 10 gigawatts by the end of 2027.
The company also plans orbital data centers under its Starmind program, built on space-optimized Vera Rubin NVL72 rack-scale systems, and reported AI revenue of $2.6 billion, up 247% year over year. That build-out adds to the demand story Nvidia CEO Jensen Huang tied to AGI and AI cybersecurity.
Inference Market Seen Doubling AI Training by 2032
Not every analyst sees Nvidia as the only winner. According to The Motley Fool, which cites Bloomberg Intelligence, the AI inference market is projected to grow at a 32% compound annual growth rate through 2032 to reach $1.3 trillion, about double the $658 billion expected for the AI training segment over the same period.
The Motley Fool's Geoffrey Seiler argues that Nvidia "will remain the leader" in training, where its CUDA software moat "still holds strong today."
In inference, however, he writes that the work is less technically demanding and Nvidia's CUDA moat "is not nearly as wide," opening room for rivals. Seiler discloses positions in AMD and Broadcom, so his view should be read as one analyst's opinion rather than a consensus call.
Company | Price (per The Motley Fool) | Daily move | AI angle cited |
|---|
Nvidia (NVDA) | $228.87 | +0.66% | Training leader, SpaceX exclusive |
AMD (AMD) | $623.77 | +1.34% | Lower-cost inference GPUs |
Broadcom (AVGO) | $364.54 | +0.52% | Custom AI ASICs |
On AMD, the article points to lower-cost GPUs, an improved ROCm software platform, and existing multiyear deals with OpenAI and Meta, with Anthropic and Microsoft among more recent customers.
Broadcom, per the same report, leads in custom ASICs, co-designed Alphabet's TPUs, and is projected to generate $115 billion in AI revenue next fiscal year and $230 billion in fiscal 2028. These projections are forecasts, not guaranteed outcomes.
Palantir Nears Top of $166 to $188 Range
On the software side, Palantir shares traded at $183.03, according to 24/7 Wall St., after a roughly 60% rally from June lows of $106.37 to a peak of $207.52. The move was driven by Q2 revenue growth of 92.83% year over year and a 149% jump in U.S. commercial revenue.
Valuation remains the key debate. As reported by 24/7 Wall St., Palantir trades at a forward P/E of 79x versus 27x for ServiceNow, and the outlet's $185.99 price target implies only about 1.6% upside, with a bull case of $213.74 and a bear case of $158.91.
Analysts have nonetheless revised FY2027 EPS estimates up 26 times in 30 days with zero cuts, and the outlet rates the stock a Hold.
What the AI Chip Split Means for Investors
Taken together, the data points to AI demand broadening across the stack, from Nvidia's training dominance to inference hardware and enterprise AI software.
Readers tracking the sector can compare this with recent AI chip and semiconductor momentum across SK Hynix, Nvidia, Arm, ASML, and Analog Devices. Elevated valuations, particularly for Palantir, mean the stocks can remain volatile even when fundamentals are strong.
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