SpaceX Earnings: What the AI Results Mean for Investors

TL;DR: SpaceX reported third-quarter revenue growth of 161% year over year, and its AI segment, which it reports as SI, is buying hardware at a heavy pace. The Motley Fool names Nvidia and CoreWeave as possible beneficiaries. That is one outlet's view, and the spending that helps those suppliers is a cost SpaceX carries.

Space Exploration Technologies (SpaceX) reported third-quarter results this week. According to The Motley Fool, total revenue grew 161% year over year to $14.6 billion, and a $608 million contribution from an acquisition that closed in August helped lift its SI unit. CNBC's Investing Club reported that the shares rose 7% on Wednesday after the quarter and an outlook that runs through year-end and into 2027.

Why does a SpaceX earnings report matter to AI investors?

Because SpaceX is now a large buyer of AI computing hardware, and a buyer's spending is a supplier's revenue. Writer Prosper Junior Bakiny reports in the Motley Fool piece that capital spending in the SI business was $16.4 billion in the quarter. Management also pointed out that even older Nvidia systems, like the H100 GPU launched in 2022, are renting out at a premium to when they were new.

If that holds, used chips keep their value longer than many buyers assumed. Bakiny argues this could give Nvidia more pricing power. That is his reading of management's comments.

What did SpaceX say about its compute plans?

Musk told analysts SpaceX plans to bring on between 2.5 and 3 gigawatts of compute by the end of the year, according to CNBC. He said he is "fairly confident" about adding 10 GW more in 2027, and suggested much more could be possible. For scale, CNBC notes that a gigawatt can power more than 750,000 homes for a year.

The numbers don't line up neatly. CNBC's own analysts refer to a target of getting 20 GW of compute online next year, and the excerpt we could read doesn't say how that squares with the 10 GW figure. They add a caution: Musk "always puts out very ambitious targets and timelines." A plan that size needs power, chips and construction to all arrive on schedule. If any one slips, the whole timeline moves.

Which two stocks does the Motley Fool point to?

Bakiny picks Nvidia and CoreWeave. The table shows what he cites for each and what stays open.

Company	What the article cites	What is still open
Nvidia (NVDA)	SpaceX's SI capex of $16.4 billion and the H100 rental premium	Whether SpaceX buys more Nvidia systems or turns to other suppliers
CoreWeave (CRWV)	A revenue backlog of $104 billion at the end of its second quarter, plus more than $25 billion added in the first weeks of the third	Backlog is contracted demand that can shrink before it becomes revenue

Read the second column first. Neither company has said what SpaceX's orders will look like.

What does this mean for an accredited investor?

The useful question for you is who else is carrying this bet. SpaceX's spending is large, and the Fool's case for Nvidia and CoreWeave rests on that spending continuing. A fund built around one name inherits that name's risk.

The same logic applies to the other side of the trade. Downside first: ask what happens to your holdings if the spending slows.

Rates add pressure. On a Morningstar podcast, one speaker said the 10-year Treasury yield is still above 5% and that he thinks the market is probably seeing some rotation out of equities and into fixed income. That is one analyst's impression. Even so, a high yield sets a higher bar for any stock priced on years of future growth.

Common mistakes

The first is reading a supplier's name as a recommendation. A headline that says a stock "could benefit" describes one possible path. It says nothing about price, and it knows nothing about the rest of your portfolio.

The second is treating a stated plan as a delivered result. Gigawatts of compute promised for 2027 are targets, and revenue backlog is a promise from customers that can shrink.

The third is counting the same bet twice. Nvidia sits inside most large index funds, and a private fund holding SpaceX may overlap with what you already own. Add up your exposure before you add more.

FAQ

What are the 3 AI stocks to soar? No source here supports a prediction of three winners. The Motley Fool names Nvidia and CoreWeave as two stocks that could benefit from SpaceX's spending. Could is the key word, and this is no forecast.

What stocks support SpaceX? The Fool's piece points to Nvidia, whose older systems SpaceX's management said are renting out at a premium, and CoreWeave, an AI compute provider. SpaceX has not said how its purchases will be split among suppliers.

Is SpaceX a good stock to buy right now? This article cannot say, and Angel Investors Network gives no buy or sell calls. The quarter showed 161% revenue growth and heavy capital spending. Whether that is worth the price depends on your goals and a qualified adviser.

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Educational content only. Not investment, tax, or legal advice. Not an offer or solicitation to buy or sell securities. Past performance does not guarantee future results. Private-market investments are illiquid and involve risk of loss, including total loss of capital. Consult qualified advisers. Angel Investors Network is not a broker-dealer or investment adviser.