SpaceX plans $40 billion debt financing to buy Nvidia chips, analyst says Starlink cash can cover it
SpaceX is reportedly arranging a $40 billion loan package to purchase Nvidia processors, according to analyst Dan Ives. The financing would be led by Apollo Global Management and would consist of about $10 billion in bank loans and $30 billion of investment‑grade bonds, with Pacific Investment Management among the potential lenders. Ives expects Starlink’s cash flow to service the debt and maintains an Outperform rating with a $225 price target for the company’s shares. The deal is projected to close in 2027, though SpaceX has not confirmed the terms.
Why it matters
If the financing proceeds, SpaceX will add a large amount of debt to its balance sheet, which could affect its credit profile and future financing costs. Ives believes the debt is manageable because Starlink generates cash, but investors will need to monitor the company’s ability to service the obligations.
Key facts
- 1SpaceX is seeking roughly $40 billion of financing to acquire Nvidia chips. benzinga.com
- 2Apollo Global Management is leading the financing effort. benzinga.com
- 3The proposed structure includes about $10 billion of bank loans and $30 billion of investment‑grade debt. benzinga.com
- 4Pacific Investment Management Co. is among the lenders in discussion. benzinga.com
- 5The transaction is expected to close in 2027. benzinga.com
- 6Analyst Dan Ives retains an Outperform rating and a $225 price target for SpaceX. benzinga.com
Summary written by AlphAI from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.