SpaceX (SPCX) shares have pulled back over the past few days as the stock's recent rally stalls. After peaking at $149.60 on August 12, the shares have retreated to $139.72 as investors book profits. The drawdown may prove brief, however, as new disclosures show some of the world's largest technology investors hold substantial positions in the company.

Nvidia and Google Hold Large SpaceX Stakes

In its recent earnings report, Elon Musk said his companies will continue using Nvidia chips for the foreseeable future. The commitment was significant, as SpaceX's data center business is seeing strong demand from customers such as Google and Anthropic.

What Musk did not reveal at the time is that Nvidia is itself a major SpaceX investor. Recent filings show Nvidia holds a $21 billion stake in the company, making it the fifth-largest shareholder after Google, FMR, and Gigafund Management. Such positions typically become public through the quarterly filings that institutional investors managing more than $100 million in US equities must submit to the Securities and Exchange Commission, which is why several large SpaceX stakes have surfaced at once. Last week, Norway's $2 trillion sovereign wealth fund also revealed a position.

Nvidia has gradually become one of the biggest players in the investing world, deploying the windfall it has received from the ongoing AI boom into a series of major investments. It has committed $100 billion to OpenAI, a stake that could grow in value as OpenAI eyes a $1 trillion initial public offering. Nvidia also took part in Intel's rescue last year; its Intel stake is now worth $22 billion, making it the fourth-largest holder. The company is additionally a big investor in CoreWeave and Nebius, two of the biggest neocloud businesses in the world, and its other top investments include Anthropic and Lumentum.

Google is the largest SpaceX shareholder, which partly explains why it has also become one of its biggest clients. Under a deal between the two companies, Google is set to pay SpaceX $950 million a month to use its compute resources. Google has separately committed to invest up to $40 billion in Anthropic, and Anthropic has committed to paying SpaceX $1.2 billion a month for computing services. The overlap, in which SpaceX's largest shareholders are also its biggest customers, mirrors a wider pattern across the AI buildout, where the same group of technology giants supplies capital, chips, and computing capacity to one another.

SpaceX Business Performing Well, Analysts See Further Growth

The recently released earnings report showed SpaceX's business performing well across the board. The space business is conducting more launches for the US government and other commercial clients, while more customers are subscribing to its Starlink service. Airlines including Alaska Airlines, Qatar Airways, and Hawaiian are also paying the company millions of dollars a month for Starlink, as carriers replace older satellite Wi-Fi systems with faster low-earth-orbit connections.

The results showed the AI business booming, with revenue soaring to more than $2.5 billion from $818 million in the same period a year earlier. In total, revenue jumped to $7.8 billion in the second quarter of this year from $4.6 billion in the same quarter last year.

Analysts tracking the company expect further growth in the coming years. Goldman Sachs analysts have predicted that revenue will climb to $474 billion by 2030, a sharp increase for a company that generated less than $19 billion last year. Estimates put revenue at $44 billion this year, followed by $97 billion next year. The company's capital expenditures, which have contributed to a negative free cash flow, are also expected to start improving. Coming quarterly reports will show how much of the committed Google and Anthropic compute payments flows into revenue, and whether free cash flow improves alongside the expected easing in capital spending.

SPCX Technical Analysis: Bullish Flag on the Four-Hour Chart

On the four-hour chart, SPCX has rebounded from $103 earlier this month to a high of $149.60 last week, and the stock is now forming a bullish flag pattern, made up of a vertical line and a downward channel. Shares have remained above the 23.6% Fibonacci retracement level and have moved above the 50-period moving average.

Based on this setup, the chart indicates a likelihood of a strong bullish breakout, with a potential move to the 50% retracement level at $164. A drop below the support at $120 would invalidate the bullish outlook.