Key Points
- As the AI stock market recovers, the Nasdaq leads the gains on Wall Street.
- SpaceX and Super Micro experience significant gains due to strong performance
- Netflix falls, investors await Tesla's and Meta's financial reports
According to Reuters, the Nasdaq Composite Index rose by 0.56%, the S&P 500 Index rose by 0.23%, and the Dow Jones Industrial Average rose by 0.17%.
After several days of volatile trading in technology stocks, the market has rebounded, and investors are re-evaluating whether AI infrastructure spending can bring sufficient returns.
SpaceX stock price rises by 11%, Super Micro soars by 12%
Elon Musk's company SpaceX rose by about 10.7% in morning trading, following the announcement of its first quarterly profit since going public.
Third-quarter revenue increased by 161% year-on-year, reaching approximately $14.6 billion; net profit was $4.4 billion, compared to a loss of $1.1 billion in the same period last year.
This performance also prompted JPMorgan Chase to raise its target price from $240 to $500, reflecting the market's growing expectations for the computing business of SpaceX AI.
Super Micro Computer also boosted tech stocks, as the company announced preliminary revenue and profit margin estimates that were better than expected, resulting in a stock price increase of about 12%.
This rebound is built on the improvement in previous order prospects, which indicated an increase in demand for AI servers, as well as the company's efforts to enhance its profitability.
Dell and HP's corporate stocks also rose accordingly, with investors interpreting the update of Super Micro as a continued positive signal for AI infrastructure spending.
Netflix falls, concerns over AI financing continue
Despite the rebound in tech stocks, the gains across different sectors on Wall Street were not evenly distributed.
A Reuters early-morning snapshot shows that Netflix has fallen by about 2.5%, following the streaming company's disappointing fourth-quarter outlook.
Prior to this, Netflix had already experienced a sell-off due to financial reports, where weaker advertising revenue expectations overshadowed the positive impact of improved quarterly profits.
CoreWeave also fell by about 2.4%, indicating that the market's enthusiasm for the infrastructure of AI remains selective.
Investors continue to question the scale of financing required for large-scale computing projects, especially in cases where companies take on substantial debt to build data centers before generating expected revenues.
Morgan Stanley's estimates show that in the first nine months of 2026, the debt issuance related to AI amounted to approximately $466 billion.
This differentiation indicates that investors are increasingly distinguishing between companies with stronger performance and those facing greater financing pressures.
Tesla and Meta financial reports become the focus
Market attention has now shifted to Tesla and Meta Platforms's quarterly earnings, with both companies planning to release their financial reports after the market closes on Wednesday.
According to market estimates, analysts predict that Tesla's revenue will be around $28 billion, while Meta's revenue is expected to be around $63.3 billion.
These reports may further clarify whether large technology companies are still able to maintain growth while investing substantial capital in the development of AI.
Macroeconomic risks remain significant as well. Brent crude oil recently reached a five-month high of $111.75 due to renewed disruptions in shipping in the Middle East region.
Higher energy costs may complicate the Fed's inflation outlook, despite improving corporate profits.
Tuesday's market fluctuations reflected these opposing forces: AI financing concerns and high oil prices once pressured the stock market, but then the market saw a broader rebound.
