The Form 13F holdings report filed by tech firms revealed their substantial positions in SpaceX (SPCX).
AMD (AMD) held 3.3 million shares of SpaceX at the time of filing. It had a value of $565.45 million, or around $170 a share on average. The firm also reported a 794,467 share holding in Cerebras (CBRS), 1.15 million shares held in Sanmina (SAMN), and 4.14 million shares held in Nutanix (NTNX).
AMD’s investment in SpaceX is unfortunate after the latter announced that it would use NVIDIA (NVDA) GPU chips exclusively.
NVIDIA disclosed in its 13F quarterly holding report last week that it held 122.76 million SpaceX shares. That included investing in xAI before SpaceX acquired it in February. It also held around 215 million shares of Intel (INTC), 166.4 million shares of Nokia (NOK), along with shares in CoreWeave (CRWV) and Coherent (COHR).
The circular nature of the AI chip firms investing in their customers is not yet a red flag. So long as they take delivery of the chips, it counts as a sale. In the last month, renewed confidence that AI spending in neoclouds and hyperscale would continue lifted the technology sector. However, risks are elevated that AI solutions do not have a high return on investment.
Competition from Chinese firms like Alibaba (BABA) and Tencent (TCEHY) also looms. That could drastically lower the cost of tokens charged for running AI.
