SpaceX Blowout Results and Super Micro Surge Reignite AI Stock Rally as Ken Griffin Warns of Bubble

AI-related stocks surged on Wednesday after two headline reports revived confidence in technology spending. SpaceX posted 161% revenue growth in the third quarter, beating Wall Street estimates and lifting its shares roughly 8% in extended trading, with AI revenue nearly tripling to $7.6 billion and surpassing Starlink for the first time as a public company. The results marked SpaceX's first operating profit as a public company, and computing leases, the Cursor acquisition, Grok, and reported deals with Anthropic and Google were cited as the primary drivers.

Super Micro Computer added further momentum, issuing a preliminary business update for its fiscal first quarter ended September 30, 2026, with revenues now estimated at $18.5 billion to $19.5 billion, sharply above its prior guidance of $14.5 billion to $15.5 billion. The upbeat forecast, seen as evidence of robust AI infrastructure demand, sent Super Micro shares higher and boosted rivals including Dell Technologies and Hewlett Packard Enterprise. Nasdaq futures moved higher on the back of the two reports, extending a rally that had already taken hold across Asian and European markets overnight.

The optimism arrived against a backdrop of pointed warnings about valuations. Citadel founder and CEO Ken Griffin, speaking at his firm's Future of Global Markets Conference in New York on October 20, said investors are "almost certainly" in the midst of an AI bubble, citing companies' struggles to convert massive AI spending into real productivity gains, while stopping short of recommending investors sell those positions. Deutsche Bank's CEO offered a contrasting view, saying he does not see a bubble in AI. Nasdaq futures gains were also tempered by oil prices holding near $110 a barrel and a drop in Netflix shares after the streaming company issued a weak fourth-quarter profit forecast.