On SpaceX's first-ever earnings call Tuesday, Elon Musk declared the company will build all future terrestrial and orbital AI infrastructure exclusively using Nvidia's Vera Rubin architecture — a deal that includes a planned orbital compute network dubbed "Starmind." Nvidia shares rose roughly 4% Wednesday on the announcement. AMD fell more than 6% after being effectively wiped from SpaceX's hardware roadmap, with Bank of America urging investors to "ignore the noise."
AMD posted Q2 revenue of $11.54 billion on EPS of $1.66, topping consensus on both lines. Data center revenue surged 107% year-over-year to $6.7 billion, driven by EPYC processors and Instinct GPUs, with data center operating income swinging from a $155 million loss a year ago to $2.1 billion in profit. Shares still dropped roughly 9% after hours on investor concerns about rising capital expenditures and margin pressure.
Palantir reported Q2 revenue up 93% to $1.94 billion, with commercial revenue up 149% and government revenue up 90%, smashing Wall Street estimates. CEO Alex Karp credited surging demand for sovereign AI tools — platforms that let customers control their own data, models, and value creation. The stock closed up 29%, with analysts noting Palantir's capital efficiency: $2.1 billion in operating cash flow in H1 2026 on just $22 million in capex.
SpaceX reported its inaugural public earnings with Q2 revenue nearly doubling on Starlink and AI business growth. But capital expenditures surged sixfold to $18.4 billion as the company accelerates AI infrastructure buildout, and a post-IPO lock-up expiration allowed early investors to sell up to 20% of holdings — sending shares down 9 to 13% depending on the session measured.
The S&P 500 crossed 7,700 for the first time Wednesday and the Dow Jones Industrial Average surged more than 900 points, with strong AI-linked earnings providing the catalyst. The Philadelphia Semiconductor Index jumped 6.6% for its fourth consecutive session of gains, rebounding sharply after a 20.6% drawdown in July.
Broadcom's latest forward guidance calls for AI semiconductor revenue to exceed $16 billion this quarter — growth of more than 200% year-over-year — reflecting the scale of hyperscaler AI buildout demand. Goldman Sachs removed AVGO from its US Conviction List in a routine monthly update but maintained its Buy rating on the stock.
Micron CEO Sanjay Mehrotra confirmed HBM4 memory is now in high-volume shipment for the lead AI accelerator platform, and the company is guiding Q4 revenue to $50 billion. Morgan Stanley named Micron its top semiconductor pick for 2026, citing the strategic convergence of the AI infrastructure cycle and the high-bandwidth memory cycle.
Nvidia has confirmed its Q2 fiscal 2027 earnings call for August 26, and Morgan Stanley is formally recommending clients add to positions ahead of the print. Nvidia's data center business has posted more than 50% year-over-year revenue growth for nine consecutive quarters, and the SpaceX exclusive partnership announced this week adds fresh near-term demand evidence heading into the report.
JPMorgan is pushing chip names hard, arguing Nvidia and AMD offer at least 30% implied upside and are less exposed to AI cannibalizing their existing products. Morgan Stanley counters by favoring Microsoft, Amazon, and Meta as the hyperscalers deploying the chips, projecting their combined $1.4 trillion in capex could generate 25–50% returns on invested capital. Two bulge brackets, two very different AI bets.
SoundHound AI reported Q2 revenue of $61.9 million, up 45% year-over-year, triggering a roughly 24% single-session gain on August 5. Analysts maintain a Strong Buy consensus with an average price target above $12, suggesting the market still sees meaningful upside despite the post-earnings pop.
AI Stocks
