SpaceX Shares Plunge on Massive AI Spending Despite Beating Revenue Expectations

SpaceX posted its first earnings report as a public company, exceeding Wall Street expectations in revenue and narrowing its net loss.

The company reported $7.81 billion in revenue for the second quarter, a 92% increase from $4.1 billion in the same period last year, surpassing analyst estimates of $6.93 billion.

Despite this success, shares dropped more than 10% due to concerns over massive AI spending, which accounted for $15.83 billion of the company's $18.37 billion capital expenditures.

Elon Musk stated that SpaceX plans to build AI data centers exclusively using Nvidia chips and expects to reach 2 gigawatts of compute capacity by the end of 2026 and over 10 gigawatts by 2027.