SpaceX SI segment revenue jumps 830% to $7.56 billion

SpaceX acquired xAI, an Elon Musk-controlled company, a few months before going public, bringing both the AI business and the social media site X under its umbrella. That deal set up the "super intelligence" segment whose Q3 results showed revenue jumping from $813 million a year earlier to $7.56 billion. The segment's growth was already visible in Q2, when revenue grew 213% year over year to $2.56 billion, but the Q3 pace of 830% represents a sharp acceleration. Within the segment, X ad revenue rose more modestly from $454 million to $538 million, while SpaceX's AI models and infrastructure revenue climbed from $2.56 billion in Q2 to $7.02 billion in Q3, making it the main driver. SpaceX's capital expenditures of $16.4 billion for the division in the quarter suggest it is investing heavily to sustain that growth. The analyst notes massive AI adoption by businesses and individuals as the backdrop, and points to rival Anthropic's breakthroughs in AI monetization as further evidence of the opportunity. Against that, the stock's 10% rise after earnings and subsequent slide back to pre-report levels indicate that a lot of future growth is already priced in. The analyst's buy case therefore rests on whether another quarter like Q3 in Q4 could confirm a larger AI growth trend and attract AI investors back to the stock.