SpaceX and Super Micro smash forecasts, reviving AI optimism and lifting Nasdaq 100 futures. Meta earnings are up next.

After a flat finish on Tuesday, Nasdaq futures are rebounding as stronger-than-expected earnings from AI stocks help revive confidence in the AI trade following last week's sell-off.

The renewed optimism is coming despite Brent trading above $110 a barrel, with attacks around the Strait of Hormuz fuelling supply concerns and U.S. data pointing to another draw in crude stockpiles. Higher oil prices are also adding to inflation concerns, which could weigh on tech stocks if interest rates stay higher for longer. For now, though, strong earnings are helping to lift sentiment.

SpaceX smashes forecasts

SpaceX is rising 8% pre-market after Q3 earnings and revenue came in well ahead of expectations across its divisions.

Revenue from the company's rocket division rose 6% year-on-year, while its satellite internet service, Starlink, saw revenue jump 69%, helped by an almost doubling of subscribers. SpaceX's AI division, or Superintelligence, which includes its data centre rental business and Grok chatbot, saw revenue surge tenfold.

SpaceX reported Q3 net income of $4.4 billion, compared with a $1.1 billion loss in the same period a year earlier. Revenue reached $14.6 billion, well above Wall Street estimates of $12.87 billion, while EPS of $0.35 was more than double the $0.15 expected.

The results show how much SpaceX has grown in the data centre market. The company has struck deals with Anthropic, Google and Reflection AI worth a combined $28 billion in annual revenue, renting out data centre capacity.

But building data centres is expensive, and not every company can borrow cheaply. Last week CoreWeave's bond yields climbed above 15% as investors worried about its ability to repay its debt. SpaceX's bond yields, by comparison, are around 7%. That gives SpaceX a considerable funding advantage, while its $90 billion cash position leaves it better placed to expand as rivals face higher borrowing costs.

There is another factor investors will be watching. Lock-up restrictions covering around 35% of SpaceX shares are due to expire over the next few days, allowing investors and company insiders to sell. Some may take the opportunity to cash in, potentially adding volatility to the share price at a time when sentiment towards AI stocks remains fragile.

Super Micro outlook impresses

Meanwhile, Super Micro Computer is up 16% after its results beat forecasts. The company expects quarterly revenue of $18.5 billion to $19.5 billion, well above its previous guidance of $14.5 billion to $15.5 billion.

The results have helped restore some confidence in AI-linked stocks after concerns over valuations, the cost of financing the AI buildout and the returns on heavy spending unsettled investors last week. The semiconductors fell 12%, while the Nasdaq ended the week down 3%.

Attention now turns to Meta Platforms, which reports after the U.S. market close today. Investors will be looking for further evidence that demand for AI is translating into earnings growth.

For now, the latest results are encouraging, but the concern over spending and financing has not gone away. Rising oil prices add another complication, as persistent inflation could keep interest rates higher and make the next phase of AI expansion more expensive.

Nasdaq 100 technical analysis

The Nasdaq 100 fell after reaching a record high of 31,365, before finding support around 29,200. The index has recovered from this low but remains below its 50 EMA and two falling trendline resistance levels, keeping the near-term outlook bearish despite the recovery in futures.

Sellers will look for a break below 29,200, which would bring 28,200, the June 9 low, and the 200 EMA around 28,150 into focus.

On the upside, buyers need to reclaim the 29,830 resistance zone, where the falling trendlines and 50 EMA converge. A break above here would open the way towards 31,000 and 31,350, around the record high.