SpaceX AI Revenue Soars to $7.56 Billion in Third Quarter

SpaceX generated $7.56 billion in AI revenue during the third quarter of 2026. This figure represents a 161 percent year-over-year increase from $813 million in the same period last year. Needham analyst Ryan Koontz cited these results as evidence that the company's vertically integrated model is driving scale. Koontz reiterated a buy rating on SPCX stock and set a price target of $250. The Connectivity segment contributed $2.37 billion in operating income. Subscriber counts for that segment rose to 13.6 million. Koontz noted that AI revenue grew 195.2 percent sequentially, driven by wholesale spot compute deals. He said management expects to add 10 gigawatts of incremental capacity during 2027. Koontz ranks 357th among 12,500 analysts tracked by TipRanks. His ratings have been profitable 42 percent of the time, yielding an average return of 23.7 percent.

Bank of America analyst Koji Ikeda raised his price target on Datadog to $335. The previous target was $305. Ikeda maintained a buy rating ahead of the company's third-quarter earnings release scheduled for November 4. Ikeda stated that infrastructure software demand is strengthening. He identified Datadog and Atlassian as his top picks. He argued that companies showing AI as a growth tailwind could see valuation rerates. The total addressable market for observability is expanding faster than expected. This growth is driven by enterprise AI and consumer AI agents. Ikeda estimates Datadog revenue growth for the third quarter of fiscal 2026 at 28.7 percent. The Street consensus stands at 29.1 percent. He believes the market is undervaluing the growth potential of Datadog's security products. Ikeda also warned of concentration risk related to large customers. He ranks 673rd among analysts tracked by TipRanks. His ratings have been successful 55 percent of the time with an average return of 10.9 percent.

Morgan Stanley analyst Joseph Moore reaffirmed a buy rating on Nvidia stock. He set a price target of $300. Moore attended the GTC Berlin conference before issuing his report. He stated that the conference supported his view that Nvidia manages supply chain bottlenecks effectively. He identified land, power, and funding as areas where Nvidia holds advantages. Moore said he is convinced all three aspects present opportunities for the company. While the conference offered no major updates, it reflected the company's momentum heading into 2027. The Vera Rubin platform is gaining traction. Details on Rubin Ultra were lighter than expected. Moore said demand currently outpaces supply. He pointed to deals in substrate, packaging, and testing as ways to close the gap. He views TSMC 3 nm wafer supply as the biggest challenge but expects it to ease. Moore ranks 142nd among analysts tracked by TipRanks. His ratings have been profitable 59 percent of the time, delivering an average return of 23.4 percent.

TipRanks provides these rankings based on past analyst performance. The platform tracks more than 12,500 analysts. Investors often use these metrics to identify long-term investment opportunities. The current market environment includes earnings season activity and Middle East tensions. U.S. midterm election buzz also factors into investor sentiment. Worries about elevated artificial intelligence spending continue to weigh on the market. These three stocks represent picks from analysts with varying track records on TipRanks. The selections span different sectors including software, semiconductors, and aerospace.