AI optimism lifts markets
Global equities moved higher on Wednesday as investors returned to artificial intelligence-linked stocks, helping technology shares recover after recent weakness. The rebound came even though some high-profile results in the sector were less than straightforward, with SpaceX and AMD both drawing attention for different reasons. The broader tone in markets was supported by a softer oil price, with Brent crude trading below $80 a barrel as traders watched for signs of progress on a possible interim deal in the Middle East.
According to the report, the renewed enthusiasm for AI names was strong enough to outweigh concerns around individual company updates. That shift helped push Asian shares higher at the start of the session, while global markets followed the same direction. Investors appeared willing to refocus on the longer-term growth story tied to AI infrastructure and related technology spending, even as questions remained about profitability and the scale of capital being deployed.
SpaceX’s first public earnings release added to the day’s market backdrop. The company reported revenue of $7.81bn for the quarter, above Wall Street expectations of $6.93bn, and said revenue had jumped 92% since June. Losses narrowed to $541m from $1bn a year earlier. Even so, the shares fell as investors looked past the stronger top line and concentrated on the company’s heavy spending. The report said capital expenditure exceeded $18bn in the quarter, much of it tied to AI infrastructure, while the AI division generated $2.6bn in revenue but still posted an operating loss of $1.3bn.
Analysts quoted in the report said the figures showed commercial progress but did not remove the longer-term risks. Starlink remains the main source of revenue and profit, while the AI business is still a costly bet on future growth. SpaceX said the division could reach an annualised revenue run rate of $100bn by December as customer agreements begin to take effect. AMD also featured in the market move, though the article did not provide detailed financial figures from its latest update. For investors, the session underscored a familiar pattern: enthusiasm for AI is returning, but the market is still weighing that excitement against execution risk, spending, and the path to profitability.
Source: theguardian.com
