SpaceX (SPCX.US) third-quarter earnings reveal that its strategic focus has substantially shifted toward artificial intelligence hardware infrastructure, a pivot that is prompting Wall Street to re-evaluate related names.
According to Woofun AI, the aerospace giant led by Elon Musk not only delivered explosive revenue growth but also displayed striking expansion ambitions in capital expenditure, directly benefiting core AI hardware supply chain players such as Nvidia (NVDA.US), Micron Technology (MU.US), and Western Digital (WDC.US).
On the financial fundamentals, SpaceX (SPCX.US) posted third-quarter revenue of $14.58 billion, surging 161% year over year, with net profit reaching $4.4 billion.
Notably, its AI business segment contributed $7.56 billion in revenue, surpassing for the first time its network connectivity business, which includes Starlink services, at $5.25 billion.
The more critical variable lies in the capital expenditure structure: of the $19.6 billion in total quarterly capital spending, as much as $16.4 billion was dedicated specifically to AI infrastructure construction.
Chief Financial Officer Bret Johnsen further disclosed that total expenditure in the fourth quarter is expected to climb to $35 billion to $40 billion, roughly 1.8 to 2 times this quarter's capital expenditure.
Buoyed by the news, SpaceX (SPCX.US) shares rose about 3% in after-hours trading at one point, with gains widening to 5.5% during the earnings call.
Data compiled by Woofun AI shows that Nvidia (NVDA.US) rose about 2% after hours, while Western Digital (WDC.US) and Micron Technology (MU.US) also posted gains of more than 1% during Tuesday's regular trading session, and although market sentiment may be driven by multiple factors, expectations of rising computing power demand have become the core catalyst.
Nvidia (NVDA.US) is seen as the most direct beneficiary. Reuters previously reported that SpaceX (SPCX.US) is seeking $40 billion in financing to purchase Nvidia (NVDA.US) AI chips, and although the financing has not yet been finalized, the potential order size is enormous.
Currently, the average price target for Nvidia (NVDA.US) from 62 analysts stands at $328.72, with Citi (C.US) setting it at $315 and UBS (UBS.US) at $300.
Despite concerns over financing delays and excessive AI spending, Nvidia (NVDA.US) is still regarded as the investment target with the greatest certainty.
As a key component for Nvidia (NVDA.US) processors handling high-intensity AI computing tasks, HBM (high-bandwidth memory) supplier Micron Technology (MU.US) is also benefiting significantly.
Micron (MU.US) reported latest quarterly revenue of $54.23 billion, more than quadrupling year over year.
Even without a formal supply agreement, SpaceX (SPCX.US) computing power expansion could still push up HBM demand.
The average price target for Micron (MU.US) from 49 analysts is $1,561, with Bank of America (BAC.US) forecasting $1,550 and KeyBanc (KEY.US) giving a high-end expectation of $1,750.
Among the three candidate stocks, Micron (MU.US) and Western Digital (WDC.US) have roughly comparable potential upside, at about 74% and 77% respectively based on October 20 closing prices, but memory prices are extremely sensitive to supply and demand fluctuations.
Western Digital (WDC.US) enters the picture on the strength of its position in high-capacity hard drives for cloud data centers.
The company's fiscal 2026 revenue grew 36% to $12.919 billion.
Morgan Stanley (MS.US) maintained its "overweight" rating on Western Digital (WDC.US) on October 20 but lowered its price target from $676 to $643, while naming peer Seagate (STX.US) as its top pick in IT hardware and raising its target to $1,200; JPMorgan (JPM.US) the previous day cut its Western Digital (WDC.US) price target from $715 to $600.
Since Western Digital (WDC.US) has not yet reached a formal agreement with SpaceX (SPCX.US), the uncertainty of its linkage is relatively high, and its earnings report due October 27 will be a key checkpoint for validating storage demand.
Overall, whether SpaceX (SPCX.US) AI investment can translate into sustained orders remains the core question: Nvidia (NVDA.US) offers a clear and direct opportunity, while Micron (MU.US) and Western Digital (WDC.US) can participate in the infrastructure expansion but face greater execution and pricing risks.
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