AMD Shares Fall 8% as Elon Musk Commits to Nvidia Chips for SpaceX

AMD shares dropped more than 8% after Elon Musk said SpaceX will stop buying AMD chips and will instead build exclusively on Nvidia’s Vera Rubin architecture for AI infrastructure. The article says AMD’s data-center chip sales doubled in the latest quarter and quarterly revenue hit a record, but the results only narrowly beat Wall Street estimates, leaving investors disappointed. The move highlights how sensitive chip stocks remain to AI spending decisions by major customers, especially as Nvidia continues to strengthen its dominance in high-end AI compute. The news is negative for AMD near term because it removes a high-profile customer narrative, while reinforcing bullish sentiment around Nvidia’s competitive position.