According to Woofun AI, SpaceX (SPCX.US) is seeking $40 billion in new debt to purchase NVIDIA (NVDA.US) chips, a financing move that strongly resonates in timing with Ray Dalio's warning that the artificial intelligence bubble is nearing a rupture. The financing plan includes a $10 billion bank loan and $30 billion in bonds, aimed at supporting AI spending that has already surpassed revenue from its rocket and Starlink businesses since its acquisition of xAI in February. Previously, SpaceX (SPCX.US) raised nearly $86 billion in its first stock market fundraising in June, followed by an additional $25 billion bond issuance. Although its BBB credit rating is two notches lower than those of Meta (META.US) and Alphabet (GOOGL.US), Morgan Stanley (MS.US) analyst Adam Jonas predicts that by 2035, SpaceX (SPCX.US) could borrow as much as $80 billion annually.
Data compiled by Woofun AI shows that all 35 Wall Street analysts tracking NVIDIA (NVDA.US) have issued buy recommendations, with an average target price set at $324.20. However, the market is divided on returns: of the 35 analysts, 28 recommend buying, 5 hold, and 2 sell, with a projected share price of $216.21 in 12 months, about 33% above Friday's closing price of $162.57, within a target price range of $75 to $450. On Friday, SpaceX (SPCX.US) shares stood at $162.57, roughly 28% below their 52-week high. Following the release of third-quarter results, 1.31 billion shares held by insiders became eligible for sale.
Jeremy Bowman of The Motley Fool believes SpaceX could be the first to suffer when the bubble bursts, but denies that the bubble will burst immediately. Industry cross-comparisons show that Anthropic's future computing investment plans total $518 billion, while OpenAI's stand at $665 billion. Affected by doubts over OpenAI's revenue, Oracle (ORCL.US) shares fell on Thursday. Ray Dalio pointed out that if interest rates continue to rise, selling pressure will keep increasing, becoming a macro risk variable hanging over all AI giants.
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