By SpaceX shares SPCX surged 7% on Wednesday after the aerospace and artificial intelligence company reported stronger-than-expected third-quarter results and issued an upbeat revenue forecast, lifting sentiment across chipmakers and data-centre infrastructure suppliers.
Investors welcomed accelerating demand for AI computing, although analysts cautioned that financing, power availability and execution risks remain.
SpaceX stock jumps after earnings beat and upbeat forecast
SpaceX shares rose 7% to $159.13 in trading, following the company’s third-quarter results released on Tuesday evening.
Revenue increased 161% year over year to $14.58 billion, exceeding Wall Street’s estimate of $12.9 billion, according to LSEG data cited in the report.
The company reported net income of $4.4 billion, around $3 billion above analysts’ expectations and a turnaround from a net loss a year earlier.
It also forecast first-quarter 2027 revenue of $33 billion to $37 billion, well above the $22 billion analysts tracked by FactSet expected.
The company’s Super Intelligence division, which includes its AI computing business, generated $7.6 billion in revenue, up approximately 830% year over year.
It accounted for more than half of quarterly sales for the first time, overtaking Starlink’s connectivity business.
SpaceX rents computing capacity to AI developers, allowing customers to access its data-centre infrastructure.
The results offered investors evidence that demand for computing power is translating into substantial revenue.
Chief executive Elon Musk said the company was facing a potential shortage of AI computing capacity.
“I think we’re going to face a shortage of Super Intelligence compute. And that shortage is going to remain for a long time,” Musk said.
He added that SpaceX could rent out its computing resources several times over if it accepted every customer request.
AI stocks gain as SpaceX outlines expansion plans
SpaceX’s results helped lift shares across the AI supply chain. Micron Technology gained around 2.5%, while Nvidia rose approximately 2.2%. Intel also advanced, and power and infrastructure suppliers GE Vernova, Bloom Energy, Vertiv and Eaton posted gains.
Melius Research analyst Ben Reitzes described the earnings call as positive for chip stocks, writing, “Good night for AI bulls, hope it lasts.”
William Blair analyst Louie DiPalma said the AI boom was well suited to SpaceX’s business model.
RBC Capital Markets analysts, led by Ken Herbert, identified the Super Intelligence division as the standout performer in the quarter.
SpaceX ended the third quarter with 1.7 gigawatts of AI computing capacity.
Musk outlined plans to increase that to 3 gigawatts by year-end and potentially reach between 13 gigawatts and 20 gigawatts by the end of 2027.
The company also expects infrastructure spending to rise sharply.
It plans to spend between $35 billion and $40 billion in the December quarter, compared with $19.6 billion in the third quarter.
SpaceX said it was on track to reach an annual recurring revenue run rate of $100 billion by December.
Musk suggested that figure could reach between $500 billion and $1 trillion by the end of 2027, supported by adoption of Grok Bot.
Analysts raise price targets but flag financing risks
Several analysts raised their price targets following the results.
Cantor Fitzgerald increased its target to $345 from $246 and named SpaceX its top coverage pick, while Citi raised its target to $240 from $200.
JPMorgan lifted its target to $500 from $240, an increase of approximately 108%.
The average analyst price target rose to $244, according to FactSet.
However, Morgan Stanley analysts, led by Adam Jonas, said they were taking a conservative approach to their 2027 projections because of uncertainty around power availability, execution, and financing. Their model assumes AI computing capacity of 8.3 gigawatts by the end of 2027.
KeyBanc analyst Michael Leshock also highlighted SpaceX’s substantial AI spending and the need for external financing in the coming years.
The results strengthened the case for AI infrastructure demand, but investors will continue to monitor whether SpaceX can deliver its ambitious capacity expansion while funding its investment plans.
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