Yahoo Finance on whether SpaceX can hold up amid the AI stock pullback

AI stocks are under pressure

Yahoo Finance reports that many artificial intelligence stocks have fallen in recent months because investors are questioning whether the heavy buildup in data center and other AI infrastructure will deliver long-term returns. The article says shareholders have been watching recent quarterly results for evidence that the spending is producing results.

The piece says the market is sending mixed signals. It points to Microsoft, which reported Azure cloud revenue of $33.1 billion in fiscal Q1 2027, ended Sept. 30, up 48% from a year earlier. Microsoft also said Azure revenue could rise by as much as 50% this quarter, after annual Azure sales passed $100 billion in fiscal 2026. Yahoo Finance says that helps show Microsoft’s $45 billion in first-quarter capital spending may be working.

Some AI names have disappointed investors

Yahoo Finance also says other companies have not been rewarded for their AI spending. It cites Alphabet, which reported third-quarter results for the period ended Sept. 30 and had capital expenditures of $51.3 billion. The company missed consensus estimates for sales and earnings, and its stock fell about 10% the day after those results were released, according to the article.

The reporting says investors are now paying close attention to whether spending is translating into growth, and companies that appear to miss the market are being punished quickly.

SpaceX’s AI sales rose sharply

According to Yahoo Finance, SpaceX investors first reacted positively to the company’s AI revenue surge of 830% in the third quarter. SpaceX’s AI sales reached $7.6 billion in the quarter ended Sept. 30, and the article says that segment now makes up 52% of total revenue. Yahoo Finance says the AI segment includes the Grok bot and rental of AI cloud capacity to customers.

Even so, the article says investors soon returned to skepticism. It reports that SpaceX shares are still about 5% below the company’s opening IPO price of $150, as of the time of writing.

Spending remains a major concern

Yahoo Finance says the main reason for caution is SpaceX’s spending. The company’s capital expenditures rose 185% to $19.6 billion in the quarter, and 83% of that was tied to AI. The article says SpaceX has also stated that capital spending could reach as much as $40 billion this year.

The reporting says investors need to watch whether the company can keep AI sales growing while spending keeps increasing. Yahoo Finance says the level of capex is a key reason shareholders and potential investors remain cautious.

Other businesses are helping, but doubts remain

The article says SpaceX is not dependent only on AI. It reports that Starlink revenue increased 69% to $5.2 billion, with 13.6 million subscribers, and says the unit is profitable. Yahoo Finance also says the company’s space launch business is growing, with 12 launches in the quarter and revenue up 6% to $1.8 billion.

Even with those results, Yahoo Finance says SpaceX is unlikely to break free from the broader AI trade sell-off right now. The article says continued skepticism about tech companies’ AI investments could keep weighing on the stock.