SpaceX posted its first quarterly profit since going public in June, driving a 9% surge in shares during early Wednesday premarket trade. The move followed a blowout earnings report where the company cited huge demand for its AI compute segment. Elon Musk stated he sees the company targeting $1 trillion in annual recurring revenue by 2028. This development raised questions about the sustainability of AI infrastructure spending as broader market futures remained mixed, with Nasdaq futures up 0.7% and S&P 500 futures up 0.2% as of 4 a.m. ET, while Dow and Russell 2000 futures stayed flat.
Super Micro Computer shares soared 16% in early premarket trade after the company raised its preliminary first-quarter revenue guidance to a range of $18.5 billion to $19.5 billion on soaring AI demand. The rally extended to other names in the AI supply chain. CoreWeave, Nebius, Nvidia, and Intel shares all rose between 2% and 4% in early premarket trade, a move that followed Musk dismissing market fears of an AI compute glut. Energy stocks including Bloom Energy, X-energy, Oklo, NuScale Power, and Nano Nuclear Energy also rose over 2%, drawing strength from Musk's comments that power and cooling infrastructure, rather than semiconductors, are becoming the main constraints on expanding AI computing.
Tesla shares rose 3% in early premarket trade ahead of an earnings report due after the bell. Retail investors are expected to watch for commentary on the company's AI ambitions, robotics strategy, and a potential merger with SpaceX. Musk announced the day before that special independent committees have formed to evaluate the potential deal. Meanwhile, Netflix shares fell 6% in early premarket trade after the company lowered its full-year free cash flow and advertising revenue guidance, despite a third-quarter profit that beat estimates.
Counterpoints to the optimism emerged from financial leaders and corporate filings. Ken Griffin, the founder of Citadel, reportedly warned that the market is likely experiencing an AI bubble, pointing to the heavy capital outlays across the industry. Separately, a draft IPO prospectus from Anthropic reportedly shows first-half 2026 revenue soaring to $16.3 billion, while computing expenses hit $9 billion. These figures suggest that even high-growth AI firms face significant cost pressures alongside their revenue expansion.
Geopolitical tensions added another layer of complexity to the trading session. Oil prices rose with Brent crude crossing $110 per barrel after Iran's Revolutionary Guards reportedly blocked tankers in the Strait of Hormuz. U.S. Secretary of State Marco Rubio said economic pressure on Tehran would continue until commercial shipping attacks stop. In response, Iranian Foreign Minister Abbas Araghchi stated the Strait would remain closed until Washington accepts Iranian conditions. The U.S. acknowledged that a peace deal remains "difficult."
Other notable premarket moves included Duos Technologies shares rising over 3% after securing a 10-year contract worth over $400 million for a 20 MW AI data center deployment. Lumentum shares rose 4% after Jefferies raised its price target to $1,250 from $1,200, expecting the firm to acquire a larger market share of Alphabet's optical circuit switching demand. SK Hynix and Samsung are reportedly looking to upgrade their China plants to produce more memory chips. Meta and IBM are set to report earnings later in the day, alongside AT&T, Abbott Laboratories, NextEra Energy, Philip Morris International, QuantumScape, and Southwest Airlines.