Nvidia Hits $4T, Yaccarino Steps Down from X & SpaceX Eyes $400 Billion Valuation

Ed breaks down how Nvidia became the first company ever to reach a $4 trillion market cap. Then he and Scott share their thoughts on why X CEO Linda Yaccarino is stepping down. Finally, Ed unpacks SpaceX’s latest move to raise funding at a $400 billion valuation. Subscribe to the Prof G Markets newsletter Order "The Algebra of Wealth" out now Subscribe to No Mercy / No Malice Follow Prof G Markets on Instagram Follow Ed on Instagram and X Follow Scott on Instagram Learn more about your ad choices. Visit podcastchoices.com/adchoices

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• 1:29Ed Elson?

  Today's number: 13%. That is the percentage of Americans who eat pizza on any given day. Put another way, pizza has twice as many daily active users in America as X. And the best part about pizza? No Nazis.

• 1:49Speaker 05

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• 2:00Ed Elson?

  Welcome to Prof G Markets. I'm Ed Elson. It is June 10th. Let's check in on yesterday's market vitals. The major indices rose, shrugging off Trump's latest tariff letters to countries including the Philippines, Iraq and Brazil. Investors were more excited about a rally in big tech, which pushed the Nasdaq to a record high. Bitcoin also hit a new record, surpassing $112,000 for the first time. Meanwhile, Treasury yields fell after a successful $39 billion sale of 10-year notes that eased bond market jitters. Okay, what else is happening? Nvidia became the first company in history to hit a $4 trillion market cap. The stock jumped around

• 2:44Ed Elson?

  2%, breaching $4 trillion before it came back down and closed at 3.97 trillion. Just two years ago, the market cap was less than 600 billion, and since then, the stock has risen more than 500%. Just remarkable. To put that in perspective, the value Nvidia has added in the past two years is actually greater than the current market cap of Apple. So this is a very historic moment. First company to hit a trillion dollars was Apple. The first to hit 2 trillion was also Apple. The first to hit 3 trillion was Microsoft, and now Nvidia is

• 3:26Ed Elson?

  the first one to hit 4 trillion dollars. So it's a big moment for the company, a big moment for AI, which is essentially carrying the stock market right now. Nvidia makes up 7% of the S&P at this point. It's up 74% since April. So when you're looking at your portfolio right now, and things look good, and they do, just remember, as with last year, you have AI to thank once again. Once again, this is the year of AI, or at least it is so far. Let's bring in Gil Luria, Head of Technology Research at DA Davidson. Let's see what he makes of this $4 trillion milestone.

• 4:05Speaker 06

  They deserve it. Nvidia has created a tremendous amount of value in the economy, in the stock market, to its employees, to its shareholders, to Microsoft shareholders, to OpenAI shareholders. And they are, they have the largest contribution to the AI revolution. Combined with OpenAI, they are probably the two companies most responsible for all the innovation and breakthrough that we've had. So it's very fitting that they would be the first ones to hit a milestone.

• 4:39Speaker 07

  Nvidia's had an insane run up so far. It's up more than a thousand percent since the beginning of 2023. Do you think it can maintain that momentum or will it run out of steam at some point?

• 4:52Speaker 06

  So the company's actually trading at a relatively similar multiple than it was trading before the AI breakthrough. Let's, let's not forget that it's a huge market that was created out of nothing two and a half years ago. There was a big data center hyperscaler market that Nvidia was the leading supplier to before generative AI broke through. And that supported the valuation they had up until the end of 2022. But this big incremental market of AI compute and the chips that facilitate AI compute

• 5:31Speaker 06

  has added so much revenue and profitability to Nvidia that that explains the entire appreciation of Nvidia's stock price. So it's very well justified based when, where we are today. Going forward is always a different question. Nvidia will not be able to continue to grow the growth rates that it had so far. In fact, it's much more realistic that the growth rates next year will be more in the 15 to 20% range. And there's also a really big swing factor around China that we have yet to fully digest.

• 6:10Speaker 06

  But either way, law of large numbers, the market is now for the deployment of AI data centers is is somewhat plateauing. The growth rates will not be the same. Not to mention the fact there's going to be increased competition. And so going forward, it may be a different story than we've had over the last two or three years.

• 6:36Ed Elson?

  That was Gil Luria, head of technology research at DA Davidson. Even at $4 trillion, sounds like he believes we are still not at peak Nvidia and that this isn't just hype. This is. You know, actual fundamentals driving this valuation, I have to say, I would agree. We'll be talking lots about Nvidia over the next few weeks. But for now, I would like to just take a moment to pay some respect to Jensen Huang, the founder and the CEO of Nvidia, because his story is quite frankly remarkable. And we don't talk about it that much. He was born in Taiwan, later moved to Thailand. And then when he was nine years old, his parents sent him to America to flee the Vietnam War.

• 7:19Ed Elson?

  He went to Kentucky, where he was enrolled in what his family thought was a prestigious boarding school, but it turns out that it was actually a correctional boarding school for troubled children. So he had a really tough time there. He was bullied, he was physically threatened, he was dealing with constant racism, but he did get through it. And eventually he landed his first job, which was washing dishes at Denny's. That's right. The CEO of Nvidia was originally a busboy at Denny's. In fact, he actually credits a lot of his success to the principles of hard work and grit that he learned working that job. He later got an electrical engineering degree from Oregon State, then he got his master's

• 8:01Ed Elson?

  from Stanford, and then in 1993, with just $40,000 in seed capital, he launched Nvidia. And I'm not going to go over the full history of the company, but the long and short of it is, this was basically a masterclass in bold bets. I mean, he started out making chips for video games, which at the time seemed a little bit ridiculous. The gaming industry was kind of just beginning, but you know, no one was taking it that seriously. And then the industry just exploded. So he had a really good run for a few years. And then when that business started to kind of plateau, he decided to make another shift and he got into general purpose computing, which again seemed a little out there at the time.

• 8:42Ed Elson?

  And then, of course, 10 years later, AI happened and the rest is history. So it's just a remarkable story. But before we wrap up, I just want to play you a quick clip of Jensen Huang reflecting on his career and his time at Nvidia. This is from the acquired podcast. The hosts were asking him about what he would do differently if he had a time machine, if he could go back in time and, you know, maybe start this company all over again. And this was his response.

• 9:12Speaker 08

  I wouldn't do it.

• 9:15Speaker 08

  I know. And the reason for that is really quite simple. Building a company and building a video turned out to have been a million times harder than I expected it to be, any of us expected it to be. And at that time, if we realized the pain and suffering and just how vulnerable you you're going to feel, and the challenges that you're going to endure, the embarrassment and the shame and, you know, the list of all the things that that go wrong, I don't think anybody would start a company, nobody in their right mind would do it. And I think that that's kind of the the superpower of a entrepreneur. They don't know how hard it is. And they only ask themselves, how hard can it be?

• 9:58Speaker 08

  And to this day, I I trick my brain into thinking, how hard can it be?

• 10:04Ed Elson?

  I just, I love that response. And I just think we have this, this obsession with romanticizing entrepreneurship. And the story, it it always sounds so fun and so exciting. And, you know, now we're seeing this big number, $4 trillion. It feels incredible. But I just think it's worth remembering in moments like this. You know, we're only hearing the story once the success has happened. But up until that point, the journey is not romantic at all. I mean, it's hard, it's grueling, as he says, it's just extremely taxing. And I just think it's notable that when you ask the guy who who really reached the top of the mountain, now

• 10:46Ed Elson?

  he he hit the pinnacle of capitalism, the world's first $4 trillion company. When you ask him, would you do it again? The answer is no. I'm not sure exactly what to make of that. You know, I still want to work hard. I still want to make a lot of money. But I will say it is certainly something that I'm thinking about, certainly something that I am carrying with me. And I just think it's a good reminder to keep things in perspective. So we'll be right back after the break with a major leadership change at X. Stay with us.

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• 12:28Speaker 03

  This episode is brought to you by Michelob Ultra. Good times mean competitions between you and your friends. Like seeing who can throw some pigskin the farthest or rush the field the fastest. Winner gets an ultra. Because it's not just a superior light beer. It's also giving fans superior access to their favorite sporting events. Superior is worth playing for. Visit michelobultra.com/superioraccess to enter. Enjoy responsibly. Copyright 2026 Anheuser Busch InBev Michelob Ultra Beer, St. Louis, Missouri.

• 13:02Ed Elson?

  We're back with Prof G Markets. Linda Yakarino is stepping down as the CEO of X. With some advertisers returning and the XAI merger complete, she said that now was a good time to step away. She served as the CEO for two years. During that time, she dealt with many challenges, including advertiser backlash over the platform's content moderation policies. Those concerns have not really gone away. Just two days ago, XAI's chatbot Grok posted a series of anti-Semitic posts on the platform. And, you know, I mean, I'm not going to go over what exactly was said, but... It was egregious, like praising Hitler.

• 13:42Ed Elson?

  No ambiguity with this stuff. So Lynda Yaccarino is out and the big question is why? Why now? You know, it could be to do with the Hitlerification of X's chatbot. That could genuinely be a reason. They really coincided here. Could be the business. Ad revenue is reportedly down 40% since Elon took over. But I think more likely it's just a combination of all of the troubles that she's had to face as the leader of this platform. And I've said it from the beginning and Scott said it too. She was never cut out for this. I mean, Lynda Yaccarino, you have to remember, this is a

• 14:22Ed Elson?

  classically educated, traditional media person. This is not like a new media player. She worked at Turner. She worked on Late Night. She worked at NBC. She worked on Peacock. I mean, her whole career before X was, it was basically selling ads for the establishment media. And that is just a completely different ballgame from being the CEO of this terminally online cesspool of edginess that is X. And let's be clear, like, that is what it is. It's kind of a news platform. That's what it bills itself as. But it's mostly a place at this point for memes and hot takes and political arguments. And now after the Elon

• 15:06Ed Elson?

  takeover, Nazism and porn. And that is not an exaggeration. We saw what happened with Grok. But we also saw multiple of these analyses that found a huge rise in Nazi content and also in pornographic content. That is what this platform is now. So the idea that this seasoned media exec was going to come in and just do what she did at NBC. That to me was crazy. That was never going to work. And you could even see it in the way she carried herself on the platform. I personally cringed every time she posted on X. Because on the one hand, you've got Elon, who's shitposting these senators and talking about their private parts.

• 15:49Ed Elson?

  And then on the other hand, you've got the CEO of the company, who's talking about like catching the big game and wishing everyone a happy Thanksgiving. I mean, she was posting on X like it was LinkedIn. It was this very traditional corporate approach. And it showed us who she is, and that is a traditional and corporate executive. And there's nothing wrong with that. But that is why I never thought she'd lost. Because when you think about it, in a lot of ways, she was the embodiment of everything Elon hates. I mean, think about why he bought Twitter. It wasn't about free speech or the town square, all the stuff he said, that was BS. The reason he bought Twitter was basically to give a giant finger to the establishment.

• 16:33Ed Elson?

  I mean, he just wanted to say screw you to the media, to CNN, to the New York Times, to NBC, to Wall Street, to the Democrats. He wanted to say, look how much money I have, look what I can do. That's what this was all about. And so to put it simply, that is a very hard thing to sell ads against. And it's especially hard if you're coming from this more traditional establishment background. And then you have to pretend that you're now this edgy, jaded character, and that you believe in all the same ridiculous juvenile principles as Elon Musk. That is a very difficult act to pull off. And that is why I never believed that she was going to stick around. And it is also my personal belief that that is why she left the company this week.

• 17:18Ed Elson?

  But let's hear from Scott. He's been talking about this for a long time. I'm sure he has lots to add. Claire hopped on the phone with him earlier.

• 17:29Speaker 07

  Hi Scott.

• 17:30Speaker 10

  How are you Claire?

• 17:31Speaker 07

  I'm well, how are you?

• 17:32Speaker 10

  I'm good. So Mr. Big Time doesn't have time for the guy who made his career. It's now.

• 17:37Speaker 07

  Yeah, that's right. He's too important.

• 17:40Speaker 10

  There you go.

• 17:41Speaker 07

  Uh, so Scott, Linda Iaccarino is out. I'm sure you didn't see this one coming at all. What are your reactions?

• 17:49Speaker 10

  Well, it's one of those things. It's so obvious after it happens. I think Musk is becoming a Trump-like figure and that is very few people, you know, it's like being in the ring with Mike Tyson. It's just very few people leave standing. You know, it's just, it's in some ways it's shocking. It took this long. She was never really the CEO of Twitter. And by the way, I've always called it and will continue to call it Twitter. She was really just meant to be a heat shield. She was there to kind of go on an apology tour for advertisers, which she was not very successful at. Advertising plummeted right after he purchased it. And I guess it's off about 40 or 50% since they purchased it. Initially, she was sort of charged with brand safety.

• 18:34Speaker 10

  And when you're dealing with Elon Musk and Twitter, which immediately saw an increase in hate speech by 50% that was tolerated. It was like setting up daycare at a strip club. I mean, it was just an oxymoron. It just didn't make, didn't make any sense. Or giving somebody like a slamming bag of raccoons and say, you know, build community now. So she, she was kind of given, she was given a very difficult job. And also she managed to handle it poorly. I'd be very curious what she does now. So I think her brand, it's interesting, her brand, it'll be a real interesting test. But Umberto Eco, the Italian philosopher, said that in our era, it's all about awareness, regardless of what you're known for.

• 19:14Speaker 10

  She is now a globally known name, but she's known as an ineffective manager that was basically CEO and name only. And it does not have a very good reputation, but at the same time, everybody now in the business world knows who she is. So it'll be very interesting to see if and whether her next move is.

• 19:31Speaker 07

  Right. So just some data, Threads is catching up in terms of daily active app users. It's up 128% year over year to 115 million. Meanwhile, X declined 15% in the same time period, still in the lead at 132 million. And then Blue Sky is way behind at 4.1 million daily active users. So do you have any predictions for X's future? Will it lose its lead in this market?

• 20:00Speaker 10

  So it's already lost it. I mean, to a certain extent, the biggest beneficiary of Musk's acquisition of Twitter was Meta shareholders. And that is by kind of loosening up or basically getting rid of all content standards, you saw 50% increase, immediate 50% increase in hate speech. Just most recently, you had XAI, the kind of the chatbot from Grok, posts very anti-Semitic content, some praising Hitler, and advertisers, that's just a third rail for advertisers. So effectively, this created an enormous opening for Threads. I don't think Threads would be as big as Twitter, and it'll, in a year, it'll be bigger

• 20:45Speaker 10

  if it wasn't for kind of the implosion in the white space that was opened up by Twitter basically declaring war on its advertising base. And Elon Musk, who's obviously very intelligent and has an incredible feel for stakeholder value, has decided that the only way to rescue this is to rub kind of AI vaseline over the lens here, and merge it with his AI startup, and then do sort of a, kind of a related party transaction that supposedly valued Twitter at 30 billion while valuing his own AI company at 80 billion, which is sort of an illusory mark, if you will. But I would say Twitter as a microblogging platform has kind of already lost to Threads, and that is Threads should not exist. And it

• 21:29Speaker 10

  exists because basically Twitter, Twitter screwed up so bad, they created such an opportunity.

• 21:35Speaker 07

  All right. Well, thank you, Scott. That's all I've got for you. I'll send your regards to Ed.

• 21:40Speaker 10

  Sounds good, Claire. Have a good rest of the day.

• 21:42Speaker 07

  Thanks, Scott. Bye-bye.

• 21:43Speaker 10

  Bye now.

• 21:44Ed Elson?

  Daycare at the nightclub. I think that pretty much sums it up. Well, we will miss Lynda Accarino. She was given an impossible job and we wish her the best of luck.

• 22:01Ed Elson?

  SpaceX is planning to raise money by selling insider shares at a new valuation of $400 billion. This underscores their status as the most valuable private company in the world. The valuation breaks the previous record, $350 billion, which was also set by SpaceX. And this company has quickly become the largest source of Elon Musk's wealth, who owns a 42% stake in the business. The new valuation makes SpaceX more valuable than OpenAI, more valuable than Johnson & Johnson, more valuable than Bank of America, and more valuable than Coca-Cola. In fact, if SpaceX were a public company,

• 22:41Ed Elson?

  it would now be the 22nd most valuable public company in the world. Just incredible. So, nothing new here in terms of the business itself, but what we are seeing is a lot of demand for this company in the secondary markets. That demand is continuing to grow. And there were some questions about SpaceX when this Elon Trump drama started to unfold. Obviously, that is putting pressure on Tesla stock, but it should arguably be putting more pressure on SpaceX stock, given the fact that SpaceX depends so heavily on government contracts. But this news appears to be telling us, actually, no, investors aren't worried about that Trump drama. Tesla investors might be worried, the stock's down more than 20% year-to-date,

• 23:26Ed Elson?

  but SpaceX investors, they are not worried. And that is why the valuation has increased as of the end of last year, as of the most recent valuation, 15%. So, for more on this, we spoke with Sri Mupidi, a reporter at The Information.

• 23:42Speaker 11

  I would say that SpaceX and Tesla are different businesses, and I think you see the stock price reflect that with Tesla, particularly because the big beautiful bill got rid of a number of energy tax credits that initially benefited Tesla. And so, while Tesla's sales were already softening, I think like this big push really sort of... You could see that like pressure on Tesla stock. But in terms of SpaceX, SpaceX, as I said, dominates the market for rocket launches and government agencies are less likely to switch. There's just a huge barrier to entry, huge amount of friction to be able to switch. And then also because it's been able to diversify into commercial revenue as well through its

• 24:25Speaker 11

  Starlink business, you really see sort of SpaceX to be more resilient than Tesla. And then I think more importantly is that just in terms of the market, there aren't as many competitors for NASA or the Defense Department to be able to like switch to. For example, Blue Origin or Rocket Labs, they just aren't at the level that SpaceX is at in terms of rocket launches or just other capabilities. And so that's why I think that SpaceX has an advantage in working with their existing set of government contracts versus a government agency, for example, switching away.

• 25:01Ed Elson?

  That was Sri Mupidi from the Information, and she makes a really great point, and that is even if you don't want to do business with SpaceX, if you want to go to someone else, you don't really have any options because SpaceX is just completely dominating this industry. And I think there are some stats here that really highlight the dominance that we're seeing from SpaceX. The first one I would point you to, there were 154 orbital launch attempts in the US last year, and SpaceX accounted for 87% of those launches, 134. That is up from 96 in 2023. It's also more launches than the rest of the world combined.

• 25:45Ed Elson?

  It's all coming from SpaceX. So when it comes to getting payloads out into space, there is simply no question. SpaceX is the undisputed number one. They're kind of your only option. So that's one part of the business, carrying stuff into space. The other part of the business here is satellites or Starlink. And on that side of the business, SpaceX is again completely dominating. Here's the big stat of the roughly 10,000 And satellites that are actively orbiting the earth. SpaceX owns 60% of them. And that number is also expected to grow significantly over the next few years. SpaceX is planning to increase their constellation network to 30,000 satellites.

• 26:29Ed Elson?

  We'll see if that's even possible, but that is what they're shooting for right now. The only viable competitor right now to the satellite network that is being developed by Starlink is Amazon's satellite network, and that is Project Kuiper. And they are making some headway, but you know, you look at the business as of today, they're still not offering any internet service. So it's a very similar dynamic to what we're seeing in the robotaxi industry, where it's kind of portrayed as maybe this competition between Waymo and Tesla. They are the two players in the space. But then you get down to it, you look at the data and you realize only one of them is actually playing here.

• 27:10Ed Elson?

  In the robotaxi industry, it's Waymo, but in the satellite industry, it is SpaceX. It is Starlink. So I think that would shed some light on the valuation. I think it also shed some light on why investors aren't so worried about what's happening in terms of Elon and his relationship with Donald Trump. It is possible that it's riding on some hype. You know, I think the fact that it is still a private company maybe makes it feel more exclusive. And so maybe you're willing to pay a premium just to be part of the club. And it is a pretty cool club, but you also can't deny the fundamentals here. $12 billion in ARR, the undisputed leader in space right now. They are essentially monopolizing the space industry.

• 27:54Ed Elson?

  That is the reality of the situation right now, and it is unlikely that that is going to change anytime soon.

• 28:02Ed Elson?

  Okay, that's it for today. Thanks for listening to Prof G Markets from the Vox Media Podcast Network. I'm Ed Elson. Join us tomorrow for our conversation with David Risher, the CEO of Left.

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