Space Exploration Technologies (SPCX) vs. NVIDIA Corporation (NVDA): SpaceX Beats on Revenue, But AI Spending Steals the Show

Space Exploration Technologies Corp. (NASDAQ:SPCX) beat Wall Street’s revenue estimates in its first earnings report since its record June IPO. The stock still fell as much as 8% in extended trading anyway, as capital expenditures soared past what analysts expected.

Why a Real Beat Still Spooked Investors

Revenue came in at $7.81 billion, up 92% from a year earlier and well above the $6.93 billion analysts expected. SpaceX also lost less money than forecast, 9 cents a share versus an expected 26 cents. However, capital spending jumped more than sixfold to $18.4 billion, with $15.8 billion of that going to AI alone, more than double the prior quarter and above the $13.22 billion analysts expected.

Musk also pledged that SpaceX would build its AI data centers exclusively with Nvidia chips. NVIDIA Corporation (NASDAQ:NVDA) shares rose about 2% on the news even as SpaceX’s own stock fell.

This makes you wonder: does a genuine beat matter less than fears that SpaceX’s AI ambitions keep getting more expensive, even as the company insists the spending already pays for itself?

SpaceX’s Bull Case

Starlink revenue jumped to $4.29 billion, up 66% from a year earlier, with operating income of $1.66 billion. That proves the core connectivity business is genuinely profitable and still…