U.S. stocks rose as strong earnings from Elon Musk’s SpaceX eased concerns about the profitability of the artificial-intelligence business, sparking gains for chip makers. The Nasdaq Composite rose 1.2%, while the S&P 500 climbed 0.8%. Investors had been worried that AI-related spending might outpace revenue, but SpaceX’s performance suggested the sector remains financially viable. SpaceX reported a record $12.3B in revenue for 2024, driven by satellite launches and AI infrastructure contracts. Nvidia and AMD led chip maker gains, with both stocks rising over 3%.
Analysts noted that Musk’s ventures continue to validate AI investment across multiple industries. The rally extended to broader tech stocks, with Microsoft and Amazon also posting modest increases. Traders are now watching upcoming earnings from Meta Platforms and Alphabet for further signals on AI profitability.
The market’s optimism reflects growing confidence that AI infrastructure spending will yield returns in the near term.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing