SpaceX reported third-quarter revenue of $14.58 billion, representing a 161% year-over-year increase alongside a $4.4 billion net profit, triggering extended-trading gains across key semiconductor and hardware stocks following massive infrastructure spending commitments.
AI Infrastructure Drives Record Capital Expenditures
The company's artificial intelligence division generated $7.56 billion during the quarter, overtaking its connectivity unit—which includes Starlink—at $5.25 billion. Following up on SpaceX Q3 revenue performance, capital expenditures reached $19.6 billion, with $16.4 billion directed strictly toward AI infrastructure.
Chief Financial Officer Bret Johnsen indicated that total capital spending in the fourth quarter could climb to between $35 billion and $40 billion, effectively doubling Wall Street expectations. Following the announcement, SpaceX shares rose 2.5% after hours, while shares of Nvidia, Micron, and Seagate each advanced approximately 2%.
Wall Street Identifies Three Key Beneficiaries
Analysts point to three US-listed hardware and semiconductor providers positioned to capture demand from SpaceX's spending push:
- Nvidia (NVDA): Closed at $216.47 with a 12-month average analyst target of $328.72 (+51.9% upside across 62 analysts). Citi maintains a $315 target while UBS projects $300. Earlier reports indicated SpaceX is seeking $40 billion in financing to purchase Nvidia AI processors.
- Micron Technology (MU): Closed at $896.07 with a 12-month average target of $1,561 (+74.2% upside across 49 analysts). Bank of America targets $1,550 and KeyBanc targets $1,750. Micron recently posted quarterly revenue of $54.23 billion, quadrupling year-over-year due to high-bandwidth memory (HBM) demand.
- Seagate Technology (STX): Closed at $675.13 with an average target of $1,138 (+68.6% upside across 26 analysts). Morgan Stanley raised its target to $1,200, whereas JPMorgan cut its target to $1,050. Seagate reported fiscal 2026 revenue of $12.2 billion, up 34%.
Why It Matters
SpaceX's aggressive capex guidance underscores how private megaprojects are becoming primary demand drivers for high-performance computing components alongside public cloud providers. If SpaceX secures its planned $40 billion financing vehicle, it could create a concentrated revenue catalyst for hardware suppliers while testing debt markets' appetite for private AI infrastructure. Investors should watch Seagate’s upcoming October 27 earnings report and Nvidia’s order backlogs to gauge whether this capital expansion converts into near-term delivery contracts.
