Tech stocks today: SpaceX, AMD top quarterly results, but fail to impress Wall Street. Shares sink

SpaceX (SPCX) and AMD reported reported better-than-anticipated earnings after the bell on Wednesday, but failed to impress investors sending shares lower.

SpaceX reported Q2 revenue of $7.8 billion versus $6.81 billion, per Bloomberg consensus, up sequentially from $4.7 billion in Q1.

But the company said capital expenditures dedicated to AI increased to $15.8 billion in the quarter. That was more than analysts were projecting and much higher than the $7.7 billion SpaceX spent in Q1.

The concern with SpaceX’s large capital requirements — like those of other large AI frontier startups and even Oracle (ORCL), Alphabet (GOOG, GOOGL), and Meta (META) — is that its AI infrastructure investments will not generate a healthy return given the level of cash required.

AMD (AMD) also reported after the bell, beating Q2 estimates and provided a strong outlook but couldn’t meet Wall Steet’s lofty expectations. The stock dropped 8% after-hours.

Nvidia will report its results on Aug. 26.

Elsewhere, Amazon’s (AMZN) market cap topped $3 trillion for the first time on Monday, and Microsoft (MSFT) stock continued to climb higher, after posting strong earnings results last week.