News / US / cnbc
Nvidia Gains Momentum Following SpaceX AI Infrastructure Endorsement
Electronic Technology · Semiconductors · cnbc · 2026-08-05
.SPX, .DJI, NVDA, SPCX, HONA, DIS, UBER, CVS, ELAN, ANET, HON, @LCO26V, SOXX, ITA, QQQ, SPY
Nvidia shares rose after Elon Musk confirmed SpaceX will utilize the company's hardware for its AI infrastructure, while Jim Cramer highlights Honeywell Aerospace as undervalued.
What Happened
Nvidia's AI Leadership: Shares of Nvidia climbed nearly 4% after SpaceX CEO Elon Musk announced that the company would build its AI infrastructure exclusively using Nvidia's Vera Rubin architecture. This endorsement reinforces Nvidia's dominant position in the AI hardware market, even as major cloud providers explore custom chip alternatives.
Market Performance Catalysts: The broader stock market reached record highs, supported by strong corporate earnings and easing oil prices. Reports of potential diplomatic agreements regarding ship traffic in the Strait of Hormuz contributed to the decline in oil prices, which analysts view as a positive catalyst for market sentiment.
Honeywell Aerospace Outlook: Jim Cramer identified the recently spun-off Honeywell Aerospace as a significantly undervalued opportunity within his portfolio. Despite initial selling pressure following the June 29 spin-off, Cramer argues that the market is overlooking the long-term quality and strategic importance of the company's aerospace components.
Strategic Growth Narrative: The discussion emphasized the long-term potential of deploying AI data centers at scale, with Musk's vision for SpaceX serving as a key growth indicator. While supply chain challenges have impacted recent performance, the focus remains on the underlying business quality and the potential for future valuation corrections.