Melius Research

SpaceX Earnings Weigh on Stock; Nvidia Gains

SpaceX shares fell after the company reported second-quarter results and disclosed $18.4 billion in Q2 capital expenditures, which exceeded estimates. Nvidia shares rose more than 3% after Elon Musk said Nvidia would be SpaceX’s “exclusive” chipmaking partner for its AI infrastructure buildout. Analysts highlighted the potential scale of Nvidia demand if SpaceX’s comments are realized, with estimates discussing multi-gigawatt add-ons and large potential revenue for Nvidia in 2027. AMD also fell after reporting higher capex of $808 million in Q2. The market reaction reflects investor concern about hyperscalers' AI spending while chipmakers are rewarded for increased demand expectations.

Apple earnings split Wall Street amid supply, AI headwinds

Apple reported fiscal third-quarter revenue of $109.42 billion, slightly above LSEG-polled estimates of $108.65 billion, with iPhone, Mac and wearables outperforming while iPad and Services revenue missed expectations. The stock fell roughly 8% after Apple gave weaker-than-expected guidance for the current quarter, forecasting revenue growth of 9–11% versus LSEG expectations of 12%. CFO Kevan Parekh cited parts supply constraints that could particularly affect iPhone revenue, and several banks and research firms flagged high memory costs, supply-chain prioritization for AI, and decelerating Services as near-term headwinds. Analysts were divided: some trimmed price targets and downgraded near-term outlooks while others highlighted Apple's strong free cash flow, upcoming iPhone and Siri AI catalysts, and potential for Services recovery. Major broker notes from UBS, Barclays, JPMorgan, Goldman Sachs, Morgan Stanley, Citi, Bank of America, Evercore ISI, Baird, Wells Fargo and Melius Research were summarized.

Microsoft Q4 Earnings Seen as Turning Point

Microsoft reported fiscal fourth-quarter results that beat analyst expectations, with Azure surpassing $100 billion for the fiscal year and its Copilot AI product exceeding 30 million paid seats. The company recorded a $3.2 billion gain from its stake in Anthropic while free cash flow fell 23% to $19.64 billion and capital expenditures were below some expectations. Wall Street analysts broadly reacted positively, raising price targets and emphasizing Azure acceleration, Copilot monetization, and improving AI unit economics as reasons the results could reverse the stock's recent underperformance.