Shares of artificial intelligence (AI) hardware companies, cloud providers, and cryptocurrency miners gained in pre-market trading after Space Exploration Technologies Corp. (NASDAQ:SPCX) CEO Elon Musk stated there is no available AI compute capacity on the market.
Musk Confirms Compute Shortage
During SpaceX’s third-quarter earnings call, Musk highlighted a severe shortage of AI compute resources across the industry. Musk said, “We are also frankly hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute.”
He noted the sheer volume of interest the company is receiving for its infrastructure. Musk added that SpaceX could rent out its compute “several times over if we said yes to everyone.”
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Cloud Providers Have ‘No Cheese’
Musk explained that SpaceX attempted to rent inference compute from other cloud providers to free up their own internal capacity for model training, but found no hardware available to rent.
Comparing the situation to a comedy sketch where a cheese shop has no cheese, Musk noted that inquiries for older and newer chips, including H100s, newer generation chips, and custom silicon like Tensor Processing Units, or TPUs, were met with the same response: “Nope, don’t have any of those.”
Musk concluded his market assessment by stating, “Yeah, so I don’t think we’re going to have a demand issue here.”
Neoclouds and Miners Rally
Following Musk’s comments, related infrastructure and hardware stocks saw positive movement before the market opened. Nvidia Corp. (NASDAQ:NVDA) showed a pre-market gain of 2.17% and Neocloud providers like CoreWeave Inc. (NASDAQ:CRWV) and Nebius Holdings NV (NASDAQ:NBIS) also rose, posting pre-market increases of 2.35% and 2.26%, respectively.
Cryptocurrency miners, which often operate as alternative data centers for AI workloads, traded higher as well. IREN gained 4.02% in the pre-market.
| Stocks | Pre-Market | 1 -Month | YTD | 1-Year |
| NVDA | 2.17% | -2.61 | 16.07% | 18.52% |
| CRWV | 2.35% | -23.64% | -13.24% | -51.10% |
| NBIS | 2.26% | -23.30% | 104.83% | 57.29% |
| IREN | 4.02% | -42.97% | -29.52% | -55.05% |
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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