In case you missed it, CEO Elon Musk announced major news during the recent Space Exploration Technologies (NASDAQ: SPCX) (better known as SpaceX) earnings conference call. While SpaceX had some exciting news about its own business, I'm more concerned with what Musk said about Nvidia (NASDAQ: NVDA).

Musk had some very complimentary words about Nvidia's products, and a SpaceX partnership is already in the making. But what does that mean for Nvidia's stock? Let's take a look.

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SpaceX CEO Elon Musk. Image source: The White House.

Elon Musk gave a shining endorsement of Nvidia's products

During the conference call, Musk stated that Nvidia makes the "best AI computer" and noted that SpaceX will exclusively be using Nvidia's new Vera Rubin architecture by the end of the year. Musk's technical prowess is well known, and an endorsement like that gives Nvidia investors all the confidence they need that it is still at the top of the AI computing food chain despite many rising competitors.

SpaceX also has a vision of launching data centers into space and performing computing there. This vision is lofty and expensive, but could make sense from a cooling and footprint standpoint. Time will tell how this business plan shakes out for SpaceX, but for Nvidia, it's just another great customer that continues to load up on its products.

But does this move the needle for Nvidia? Likely not. Over the first six months of the year, SpaceX spent about $28.5 billion on capital expenditures. Annualized, that's nearly $60 billion. For comparison, the AI hyperscalers are spending anywhere from $100 billion to more than $200 billion on data center capital expenditures this year. Not all of those funds for any company go directly to Nvidia, but a decent chunk of them do.

So, having SpaceX as an exclusive client helps Nvidia, but doesn't make or break its business. I think the real news here is that SpaceX has identified Nvidia's product as best-in-class, which likely is the same sentiment shared across the AI computing landscape. This strengthens Nvidia's investment case, as right now the market is assuming the company will lose share to competitors and priced the stock at a dirt cheap level.

At less than 24 times forward earnings, Nvidia's stock isn't that expensive relative to the growth it's delivering, and I think it's one of the best investment options available right now.