SpaceX reported a sharp increase in third-quarter revenue and profit, with its AI business generating more revenue than its connectivity operations, including Starlink, for the first time. The company also significantly raised its expected spending on computing infrastructure, prompting renewed attention on potential demand across the AI hardware supply chain, particularly for Nvidia, Micron and Seagate Technology.
SpaceX disclosed on October 20, 2026, that third-quarter revenue reached $14.58 billion, up 161% from a year earlier. Net profit was $4.4 billion. By segment, AI revenue totaled $7.56 billion, compared with $5.25 billion from connectivity services, including Starlink.
SpaceX Raises Infrastructure Spending Plans
The more consequential development for hardware suppliers was the company’s capital spending outlook. SpaceX spent $19.6 billion on capital expenditure in the third quarter, including $16.4 billion for AI infrastructure. That represented the bulk of quarterly capital spending.
Chief Financial Officer Bret Johnsen said total spending could reach $35 billion to $40 billion in the fourth quarter, roughly twice Wall Street’s previous expectation. If implemented, the plan could increase SpaceX’s demand for AI chips, memory and data-storage equipment. The size of any resulting orders, their timing and the company’s financing arrangements have not been finalized.
SpaceX shares rose about 2.5% in after-hours trading. Nvidia, Micron and Seagate Technology also briefly gained about 2% after the announcement, although other market factors may have influenced their share-price moves.
Analyst Targets and Share Prices
As of the October 20 close, aggregated market data showed Nvidia at $216.47 a share, against an average 12-month price target of $328.72, implying 51.9% upside. Micron traded at $896.07, compared with an average target of $1,561, implying 74.2% upside. Seagate Technology closed at $675.13, versus an average target of $1,138, implying 68.6% upside.
These figures represent the gap between analyst price targets and the closing prices on that date. They do not indicate actual outcomes or assured returns.
Nvidia Has the Most Direct Potential Link
Of the three companies, Nvidia appears to have the most direct potential business connection with SpaceX. The market has previously focused on SpaceX’s effort to raise about $40 billion to purchase Nvidia AI chips. If the financing and procurement plans are completed, SpaceX’s expansion could create additional demand for Nvidia processors.
The financing has not yet been finalized, however, and the related purchases have not become confirmed orders. The eventual effect of SpaceX’s capital spending on Nvidia’s revenue will therefore depend on whether the funding is secured, when chips can be delivered and how quickly the infrastructure is built.
Spending Could Reach Memory and Storage Suppliers
Micron and Seagate Technology operate in the memory and data-storage segments, respectively. Expanding AI infrastructure requires not only computing chips but also larger volumes of high-performance memory and data-processing equipment. SpaceX’s higher spending expectations have led investors to reassess the potential for orders flowing to suppliers in these areas.
Several steps still separate SpaceX’s reported performance from supplier revenue, including procurement approval, product delivery and capacity planning. The facts currently established are that SpaceX generated $7.56 billion in AI revenue in the third quarter and plans to continue increasing infrastructure investment. The extent to which Nvidia, Micron and Seagate ultimately benefit will depend on subsequent orders, financial results and management disclosures.