Business · Markets · 5 hrs ago

SpaceX results lift US stocks and ease worries about AI demand

SpaceX results lift US stocks and ease worries about AI demand

SpaceX's results helped lift US stocks on Wednesday, with the Nasdaq gaining 1.1%.

The company reported its first profit as a publicly traded business, alongside a sharp rise in revenue.

Super Micro also reported strong results and forecast quarterly sales and profit margins above expectations, while its shares rose 9.6%.

Investors had recently worried that heavy spending on artificial intelligence might not deliver enough returns, and the results eased some of those concerns.

The gains reflected confidence in continued AI demand, though analysts said questions about the returns on investment remain and market sentiment could change quickly.

Elon Musk said he thought a merger between SpaceX and Tesla was a good idea, but any deal would need approval from Tesla shareholders and competition regulators.

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What people are saying

Simon WiersmaChief investment strategist at ING
SpaceX seems to have delivered exactly what the market was looking for: proof that demand in the AI sector is still very real
via cash.ch
Angelo KourkafasStrategist at Edward Jones
The results do not answer all investor questions about returns on AI investment, but they are a good start
via n-tv
Marc DizardChief investment officer at Huntington Bank
The AI sector is still intact
via n-tv