BUZZ-SpaceX seeks 40 billions USD in financing to purchase Nvidia chips, stock price drops in response

October 7 - ** SpaceX (SPCX.O) shares fell 1.8% premarket to $168.9

** According to the Financial Times, citing sources familiar with the matter, the company (link) plans to raise $40 billion to purchase artificial intelligence chips from NVIDIA NVDA.O

** The Financial Times reports that the proposed funding, led by Apollo Global Management APO.N, includes about $10 billion in bank loans and $30 billion in investment-grade bonds, which will be used to pay for the chip order—Financial Times

** This move by the company led by Elon Musk highlights the massive capital required by the artificial intelligence boom, as tech firms race to expand their computing infrastructure

** SpaceX, Apollo Global Management, and NVIDIA have not yet responded to Reuters' requests for comment

** Out of 41 brokerages, 32 rate the stock as “buy” or higher, 6 as “hold”, and 3 as “sell” or lower; the median target price is $217—data compiled by London Stock Exchange Group (LSEG)

** As of the previous trading day's close, SPCX stock was up 27.3% from its IPO price of $135

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