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SpaceX AI Chip Spending Could Make 1 of These ETFs Blast Off

Elon Musk’s SpaceX (SPCX) is widely viewed as a rockets and satellites company. That’s an accurate description. But the company’s longer-ranging AI plans are a source of allure for patient market participants.However, AI expansion isn’t inexpensive. And SpaceX’s plan to spend $40 billion on Nvidia (NVDA) chips is raising eyebrows. That could imply opportunity with single-stock ETFs. Such ETFs include the Direxion Daily SpaceX Bear 2X ETF (LOFD) and the Direxion Daily SpaceX Bull 2X ETF (LOFF). The bearish LOFD debuted in early August. It attempts to deliver 200% of the daily inverse performance of SpaceX shares. The fund could be interesting to aggressive traders because SpaceX has to finance its purchases of Nvidia chips. That move includes raising $10 billion in bank debt and selling $30 billion in investment-grade corporate debt. That borrowing arrives against the backdrop of high interest rates. Potentially adding to the allure of the inverse LOFD for some traders is the fact that $40 billion in borrowing isn’t far off the $44.5 billion in revenue SpaceX is expected to generate this year.When It Comes to AI, SpaceX Isn’t Messing AroundMusk is making clear SpaceX and his AI startup xAI, which is a unit of the space company, are heavily committed to AI. He recently noted he expects the number of Nvidia chips deployed at the Colossus 2 data center could double by the end of 2026. Musk recently said “on X that the facility has 110,000 Nvidia GB200 chips and 440,000 GB300 chips, referring to Nvidia’s latest-generation Blackwell and Blackwell Ultra GPUs. However, he said the company behind the Grok AI chatbot expects to have another 220,000 GB300s operational by the following week and an additional 220,000 units in November,” reported MarketWatch. The near-term spending required by SpaceX to meet its AI targets may make LOFD appealing. But there’s no denying that when properly executed, data center spending can generate handsome returns. And that potentially signals risk-tolerant traders shouldn’t ignore the bullish LOFF. That is an ETF that attempts to deliver 200% of the daily returns of SpaceX shares. “While SpaceX was previously targeting 5 gigawatts of computing capacity by the end of 2027, Musk recently said he expects that to be closer to 10 gigawatts, made up of Nvidia’s (NVDA) most advanced graphics processing units,” according to MarketWatch. Traders can also tap the Direxion Daily NVDA Bull 2X Shares (NVDU A-) as a potential beneficiary of SpaceX’s sizable AI chip expenditures. For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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