According to Woofun AI, SpaceX (SPCX.US)'s third-quarter earnings report revealed that its strategic focus has substantially skewed towards artificial intelligence hardware infrastructure. This shift has caused Wall Street to re-examine relevant targets. Elon Musk's space giant not only achieved a revenue explosion, but also showed amazing expansion ambitions in terms of capital expenditure, directly benefiting core AI hardware supply chain companies such as NVDA.US (NVDA.US), Micron Technology (MU.US), and Western Digital (WDC.US).
Looking at financial fundamentals, SpaceX (SPCX.US) recorded third-quarter revenue of 14.58 billion US dollars, a year-on-year surge of 161%, and net profit of 4.4 billion US dollars. Notably, its AI business segment contributed $7.56 billion in revenue, surpassing the networking business including Starlink services ($5.25 billion) for the first time.
The more critical variable is the capital expenditure structure: Of the total quarterly capital expenditure of $19.6 billion, up to $16.4 billion was earmarked for AI infrastructure construction. Chief Financial Officer Brett Johnson further revealed that total spending for the fourth quarter is expected to climb to $35 billion to $40 billion, about 1.8 to 2 times the current quarter's capital expenditure. Boosted by this news, SpaceX (SPCX.US) shares rose about 3% after the market, and the increase further extended to 5.5% during the earnings conference call.
According to data compiled by Woofun AI, Nvidia (NVDA.US) rose about 2% after the market, and Western Digital (WDC.US) and Micron Technology (MU.US) also recorded increases of more than 1% during the normal trading session on Tuesday. Although market sentiment may be driven by multiple factors, the expected increase in computing power demand has 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. Although the financing has yet to be finalized, the potential order size is huge. Currently, 62 analysts have given an average price target of $328.72 for Nvidia (NVDA.US), with Citibank (C.US) at $315 and UBS (UBS.US) at $300.
Despite concerns about funding delays and excessive AI investment, Nvidia (NVDA.US) is still regarded as the most definitive investment target. As a key component of Nvidia (NVDA.US) processors to handle high-intensity AI computing tasks, HBM (High Bandwidth Memory) supplier Micron Technology (MU.US) has also benefited significantly. Micron (MU.US)'s latest quarterly revenue reached $54.23 billion, a year-on-year increase of more than fourfold. Even without a formal supply agreement, SpaceX's (SPCX.US) computing power expansion may still drive demand for HBM. 49 analysts gave an average price target of $1,561 for Micron (MU.US), $1,550 for Bank of America (BAC.US), and $1,750 for KeyBanc (KEY.US). Among the three candidate stocks, Micron (MU.US) and Western Digital (WDC.US) have roughly the same potential upside. They are about 74% and 77% respectively at the closing price on October 20, but memory prices are extremely sensitive to fluctuations in supply and demand.
Western Digital (WDC.US) has gained visibility with its position in the field of high-capacity hard drives in cloud data centers. The company's 2026 revenue increased 36% to $12.919 billion. Morgan Stanley (MS.US) maintained its WDC.US (WDC.US) “plus” rating on October 20, but lowered the target price from $676 to $643, while listing STX.US as the IT hardware first choice and raising the target price to $1,200; JPM.US (JPM.US) lowered its WDC.US (WDC.US) target price from $715 to $600 the day before. Since Western Digital (WDC.US) has yet to reach a formal agreement with SpaceX (SPCX.US), its correlation uncertainty is high, and the financial report released on October 27 will be a key point in verifying storage requirements. Taken together, whether SpaceX (SPCX.US)'s AI investment can be converted into ongoing orders is still the core question: Nvidia (NVDA.US) provides clear and direct opportunities, while Micron (MU.US) and WDC.US (WDC.US) can participate in infrastructure expansion, but face greater execution and pricing risks.