SpaceX AI revenue hits $7.56 billion, drawing new Wall Street buy ratings

SpaceX generated $7.56 billion in artificial intelligence revenue during the third quarter of 2026, a massive leap from $813 million in the same period the prior year. The aerospace company reported a 161 percent year-over-year jump in total revenue, with its Connectivity segment contributing $2.37 billion in operating income. Subscriber numbers for that segment rose to 13.6 million. Needham analyst Ryan Koontz responded to these figures by reiterating a buy rating on SPCX stock with a price target of $250. Koontz noted that the results proved the company's vertically integrated model is driving scale. He also pointed to 195.2 percent sequential growth in AI revenue, which he attributed to wholesale spot compute deals. The analyst stated that management is optimistic about adding 10 gigawatts of incremental capacity in 2027.

Analysts also turned their attention to semiconductor giant Nvidia. Morgan Stanley analyst Joseph Moore attended the company's GTC Berlin conference and reaffirmed a buy rating with a $300 price target. Moore described Nvidia as a top pick in the sector. He said the event supported his view that Nvidia is effectively managing supply chain, power, and funding bottlenecks. Moore noted that the Vera Rubin product line is gaining momentum, although details on the next-generation Rubin Ultra were less detailed than expected. He identified TSMC 3 nanometer wafer supply as the primary challenge, though he expects that constraint to ease over time.

Datadog, an observability and security platform, received similar support from Bank of America analyst Koji Ikeda. Ikeda maintained a buy rating and raised his price target to $335 from $305 ahead of the company's third quarter earnings report scheduled for November 4. Ikeda cited industry checks indicating that infrastructure software demand is strengthening, with AI driving usage. He estimated Datadog's revenue growth for the quarter at 28.7 percent, slightly below the Street consensus of 29.1 percent. Ikeda argued that the market is underestimating the growth potential of Datadog's security products while cautioning investors about concentration risk among large customers.

According to TipRanks, which tracks analyst performance, Ikeda ranks 673rd among more than 12,500 analysts. His ratings have been successful 55 percent of the time, yielding an average return of 10.9 percent. Moore ranks 142nd, with a 59 percent success rate and a 23.4 percent average return. Koontz stands at 357th, with ratings that were profitable 42 percent of the time, delivering an average return of 23.7 percent.

Investors are watching these three companies amid a busy earnings season, Middle East tensions, and upcoming U.S. midterm elections. Concerns over elevated artificial intelligence spending have weighed on sentiment, yet these analysts remain bullish on the long-term prospects of these specific firms. The next major data point for this group arrives on November 4, when Datadog releases its financial results.