3 Stocks That Can Benefit From SpaceX’s Surprise Q3 Earnings
SpaceX’s newest earnings have given Wall Street a cause to revisit AI {hardware} shares. Elon Musk’s firm is getting ready to spend billions extra on computing infrastructure, and three US-listed shares may gain advantage.
On Tuesday, SpaceX reported third-quarter revenue of $14.58 billion, up 161% 12 months over 12 months, and a $4.4 billion internet revenue.
Its AI division generated $7.56 billion, surpassing its $5.25 billion connectivity enterprise, which incorporates Starlink.
The greater shock was spending. AI infrastructure consumed $16.4 billion of SpaceX’s $19.6 billion in quarterly capital expenditure. CFO Bret Johnsen said complete spending may attain $35 billion to $40 billion in This fall, roughly twice Wall Street’s expectations.
SpaceX shares rose round 2.5% after hours. Nvidia, Micron and Seagate additionally gained roughly 2% in extended-trading snapshots, though different market developments possible contributed.
3 Stocks Wall Street Sees With Significant Upside
| Stock | Oct. 20 shut | Average 12-month goal | Implied upside |
| Nvidia (NVDA) | $216.47 | $328.72 | +51.9% |
| Micron (MU) | $896.07 | $1,561 | +74.2% |
| Seagate (STX) | $675.13 | $1,138 | +68.6% |
1. Nvidia (NVDA): The Clearest SpaceX Connection
Nvidia has the strongest direct hyperlink to SpaceX’s enlargement.
Earlier this month,(*3*) that SpaceX was searching for $40 billion in financing to buy Nvidia AI chips.
That potential order may present vital further demand for Nvidia’s processors. The financing stays unfinalized, nonetheless.
Among 62 analysts, the common value goal is $328.72. Citi targets $315, whereas UBS forecasts $300.
Nvidia is our strongest decide for direct publicity, though financing delays and issues over extreme AI spending stay dangers.
2. Micron (MU): AI’s Growing Memory Demand
Nvidia’s processors want high-bandwidth reminiscence (HBM) to deal with demanding AI workloads. Micron is a serious provider of that know-how.
Its newest quarterly revenue reached $54.23 billion, greater than quadrupling from a 12 months earlier.
SpaceX’s computing enlargement may strengthen this demand additional, even with out a confirmed direct provide settlement.
The common goal amongst 49 analysts is $1,561. Bank of America forecasts $1,550, whereas KeyBanc targets $1,750.
Micron gives the best consensus upside of our three picks, though reminiscence costs stay weak to adjustments in provide and demand.
3. Seagate (STX): The Storage Opportunity
AI infrastructure additionally requires huge storage capability. Seagate makes high-capacity laborious drives utilized by cloud information facilities.
Its fiscal 2026 income grew 34% to $12.2 billion.
On Tuesday, Morgan Stanley named Seagate a top hardware pick, lifting its value goal to $1,200. JPMorgan, in the meantime, lowered its goal to $1,050.
The 26-analyst consensus stands at $1,138.
Seagate has no confirmed SpaceX provide deal, making its connection extra speculative. Its October 27 earnings ought to present a clearer take a look at of storage demand.
The key query now’s whether or not SpaceX’s bold AI funding plans translate into sustained orders. Nvidia gives the clearest direct alternative. Micron and Seagate present broader publicity to the infrastructure enlargement, with higher uncertainty.
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