U.S. stocks rallied, with the tech-heavy Nasdaq leading gains, after SpaceX reported third-quarter results that far exceeded analyst expectations.
SpaceX revenue surged 161% year over year to $14.6 billion. The company reported a net profit of $4.4 billion, compared with a loss the previous year.
SpaceX’s AI business now accounts for more than half of its revenue. The division primarily earns money by renting data-center capacity to other AI developers, reflecting strong demand for AI infrastructure.
The results renewed optimism in the AI trade, lifting shares of related public companies, including Nvidia and Super Micro Computer.