SpaceX shares SPCX surged on Wednesday after the aerospace and artificial intelligence company reported third-quarter results that blew past Wall Street forecasts, reigniting the AI trade and lifting sentiment across chipmakers and data-centre infrastructure suppliers.
Revenue increased 161% year over year to $14.58 billion, above the $12.9 billion consensus estimate. Net income reached $4.4 billion, around $3 billion above expectations and a turnaround from a net loss a year earlier. The company also guided for first-quarter 2027 revenue of $33 billion to $37 billion, far above the $22 billion analysts expected.
The standout performer was the Super Intelligence division, which 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.
Chief executive Elon Musk said the company could face a prolonged shortage of AI computing capacity, adding SpaceX could rent out its computing resources several times over if it accepted every customer request. SpaceX ended the third quarter with 1.7 gigawatts of AI computing capacity, with plans to reach 3 gigawatts by year-end and potentially between 13 and 20 gigawatts by the end of 2027.
Following the results, JPMorgan doubled its price target to $500 from $240. Cantor Fitzgerald raised its target to $345 from $246 and named SpaceX its top coverage pick, while Citi lifted its target to $240 from $200. The average analyst price target rose to $244, according to FactSet. However, Morgan Stanley and KeyBanc flagged financing, power availability and execution risks as key challenges.
