The author argues that SpaceX's super intelligence (SI) division, which holds its AI data center platform, was formed from xAI and includes X, is the top reason to invest in the stock, more so than its rocket or Starlink businesses. SI revenue reached $7.56 billion in the third quarter, up about 830% from $813 million a year earlier and roughly three times the $2.56 billion from the second quarter. The division invested $16.4 billion in capital expenditure and posted a small operating profit of $431 million. This was the first report since SpaceX acquired Cursor in August, a deal that added to revenue and came with a $1.2 billion stock-based compensation cost, which the author says will not repeat.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SpaceXartificial intelligencedata centersearnings
Open a keyword to see other news on the same topic.
Related news
- SpaceX swings to profit on AI infrastructure boom, but capex bill is climbing
SpaceX swung to a $4.4 billion profit in the third quarter from a $1.1 billion loss, with its AI infrastructure segment reporting $7.6 billion in revenue versus a $6.5 billion Street forecast. The company now targets 13 gigawatts of compute by the end of 2027, up from 1.7 gigawatts at quarter end, and guided fourth-quarter capex to $35 billion to $40 billion, roughly double the third quarter's $19.6 billion; UBS estimates reaching 13 gigawatts needs about $350 billion in total spending. Swissquote's Ipek Ozkardeskaya argues SpaceX's funding capacity could be an edge, noting its 2033 bond yields less than half the almost 15% yield on CoreWeave's 8.5% bond due 2032. Starlink added 1.6 million subscribers, below UBS's 2.3 million forecast, while average revenue per user fell 17% to $69. UBS kept its Buy rating and raised its price target to $230, while special committees are evaluating a possible Tesla combination, which Musk says is by no means inevitable.
- Elon Musk: SpaceX Revenue Could Hit “Somewhere Between $500 Billion and a Trillion” by 2027
On the earnings call, Elon Musk said SpaceX’s annual recurring revenue could reach between $500 billion and a trillion by the end of 2027, a goal that requires building compute faster than almost any company has tried. SpaceX posted its first quarterly profit of $4.4 billion in the latest quarter, versus a $1.1 billion loss a year earlier, with revenue up more than 160% to $14.6 billion; capex of $19.6 billion could reach $40 billion next quarter. Management says new compute installations pay back in under a year if prices hold, but the target of 13 GW by end-2027, up from 1.7 GW, depends on power, cooling, and NVIDIA’s Vera Rubin systems arriving on time. Shares rose 7.79% to $159.31, and a Tesla combination would need approval from 50% of Tesla’s outstanding shares, a hard bar given many holders never vote.
- 5 Stocks Poised to Win Big as SpaceX Ramps Up AI Infrastructure
The article says SpaceX plans to increase its AI computing capacity by about 10 gigawatts next year, with a stretch goal of 20 gigawatts. Nvidia is named the biggest beneficiary, since SpaceX will build its data centers exclusively on Nvidia's Vera Rubin architecture, which could mean more than $400 billion in revenue at roughly $40 billion per gigawatt. SK Hynix is highlighted as the HBM leader with over 50% market share and a $500 billion long-term supply deal with Nvidia. Vertiv and Amphenol are cited for cooling, power and interconnect products, though Vertiv is not confirmed as a direct SpaceX supplier. TSMC benefits from AI capital spending, but its longer-term role is uncertain given the planned Terafab chip facility, which Elon Musk said could produce chips in volume by Q3 2028.
- Just raised $40 billion to buy GPUs, Elon Musk warns more than 200 AI companies face being wiped out: Money is the cause
Elon Musk said SpaceX has raised $40 billion to buy AI chips, while warning that more than 200 neocloud companies could be forced out or merged because of difficulty accessing borrowed capital. He explained that SpaceX can still borrow thanks to its investment-grade credit rating and revenue from Starlink and rocket launch services; the debt mainly funds GPU purchases, expected to be delivered in Q1 and Q2 2027. The article notes that the cost of insuring against default for some neocloud firms has risen recently, while tenants are demanding penalties of over $5 million per day if developers fail to deliver power and infrastructure on time, up sharply from about $1 million at the start of the year. CoreWeave's unsecured bond yield was cited at around 15%. Musk also said some companies will survive the difficulties, though not many.
- Elon Musk confirms $40 billion SpaceX debt deal for AI chips, warns of neocloud shakeout
SpaceX has raised $40 billion in callable debt, which can be repaid early, to buy GPUs used to run AI systems. Musk said the company could borrow because of its strong credit rating and steady revenue from Starlink and rocket launches, while debt markets have almost entirely closed to companies without substantial revenue independent of AI data centers. He predicted that more than 200 “neoclouds” will consolidate into a few survivors. The article notes that Nasdaq futures were near 29,080, down sharply from above 30,000 earlier this month, as investors grow worried about returns on heavy AI spending.
- SpaceX closes $40 billion debt deal for AI chips, Elon Musk says
Elon Musk said SpaceX has closed $40 billion in debt financing to buy GPUs for AI systems, adding that the company is investment grade and earns revenue from Starlink and rocket launches. He said the financing, mainly callable debt for GPUs, is expected to arrive in the first and second quarters of 2027. Bloomberg reported that the debt was structured through a special purpose vehicle to keep it off SpaceX's balance sheet and preserve its investment-grade ratings, with Goldman Sachs leading talks with investors including Apollo Global Management. SpaceX's AI business, which it calls ‘Super Intelligence’ (SI), is now its largest unit, with third-quarter revenue surging ninefold to $7.56 billion from $813 million a year earlier. Musk also predicted that more than 200 neocloud companies would face widespread failures and consolidation, as debt markets have largely shut off financing for firms without substantial revenue outside AI data centers.
Related markets
Latest news
- Google Cloud Revenue Just Grew 103%, so Why Is the Stock Falling?
Alphabet reported third-quarter results after the market close on Wednesday. Revenue rose 25% to $127.6 billion, below analyst estimates of $127.9 billion, while diluted EPS of $2.12 fell 26% against expectations of $3.01. Operating income climbed 30% to $40.6 billion. Google Cloud revenue soared 103% to $30.7 billion, with an operating margin of 36.2%, and CEO Sundar Pichai cited huge demand for AI infrastructure. The EPS decline mainly reflected an $8.2 billion loss on equity investments, including SpaceX, compared with gains of nearly $12.8 billion a year earlier. Alphabet expects capex of about $200 billion in 2026 and $300 billion in 2027, leaving free cash flow at -$9.1 billion, and the stock fell as much as 11% after hours.
- 2 Millionaire-Maker Custom Silicon Stocks Powering the AI Infrastructure Supercycle
The article profiles Broadcom and Taiwan Semiconductor Manufacturing (TSMC) as leading custom-silicon players. Broadcom, which partners with Alphabet on TPUs and counts Meta, OpenAI, and Anthropic among its ASIC customers, reported third-quarter AI semiconductor revenue up 221% to $16.7 billion and net income up roughly 216% to $13.1 billion. It expects fourth-quarter AI revenue to rise 236% to $21.7 billion, and the stock trades at about 28 times expected earnings this year. TSMC manufactures chips designed by its customers and, according to many estimates, controls over 90% of the high-end AI chip market. Its stock has delivered a total return of roughly 4,720% over 15 years. The author notes that both stocks' valuations have been volatile amid AI bubble concerns, while their market positions remain strong.
- Bel Fuse (BELFA) Stock Sees Modest Fair Value Lift As Analysts Rework Targets
Bel Fuse's estimated fair value has moved from US$313 to US$326, in line with recent Street targets of US$326 to US$335. Northland raised its target to US$326, calling it another strong quarter with a better-than-expected Q3 sales outlook. JPMorgan kept an Overweight rating but cut its target twice, most recently from US$380 to US$330 in October 2026, a more cautious stance on how current risks and execution uncertainties may cap valuation. Model assumptions were also updated: revenue growth from 11.53% to 11.94%, net profit margin from 20.57% to 20.35%, future P/E from 33.59x to 34.87x, and discount rate from 8.82% to 8.70%.
- 3 Founder Led Stocks With At Least 22% Earnings Growth
The article looks at three founder-led businesses as AI spending draws scrutiny after Alphabet reported negative free cash flow of US$9.07 billion and raised its AI infrastructure capex guidance. Sansan, a Japanese SaaS group founded by Chika Terada, generates about ¥48.9 billion from its Sansan and Bill One segment, with a market value near ¥273.9 billion. Spotify Technology, where Daniel Ek still shapes the long-term vision, earns about €18.8 billion in revenue, mostly from Premium subscriptions, and is valued near US$114.2 billion. China Medical System Holdings, controlled by Treasure Sea Limited, generates about CN¥7.3 billion from its Integrated Business and is valued near HK$24 billion. The article argues founder leadership may encourage more careful capital protection and highlights capital allocation and AI strategy as key questions for these companies.
- October 29: What to Read Before the Stock Market Opens
A roundup of domestic and international financial news from the past 24 hours. In Vietnam, Digiworld (DGW) reported third-quarter profit up 66% to VND 276 billion, though its shares still fell to the floor price, while Thế Giới Di Động (MWG) posted third-quarter net profit up 75% to nearly VND 3.1 trillion, and VIB reached nearly VND 7,600 billion in nine-month pre-tax profit, up 8%. Pi Group's PDCC repurchased VND 900 billion of bonds before maturity, spending nearly VND 996.3 billion. Globally, Beijing is urgently seeking to support its weakening stock market amid an AI sell-off, while the US pending home sales index fell 7.3% to 66.0 points in September 2026, its lowest since 2001.
- Interest Rates on October 29 at Agribank, Vietcombank, BIDV, VietinBank, MB, VPBank, Techcombank, Sacombank, HDBank,...
A survey of online deposit rates at 35 banks on October 29, 2026 shows wide gaps between banks and across terms. For the 18-month term, VPBank leads at 7.4% per year, while five banks (MBV, PGBank, Sacombank, VCBNeo and VIB) each list 7% per year for 12 months. SCB has the lowest 12-month rate at 0.6% per year, 6.4 percentage points below the top. For 6 months, PGBank is highest at 6.9% per year, while 4.75% per year is the common 3-month rate, with SCB at only 0.1% per year.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.