Wall Street closed higher on Wednesday as quarterly results from SpaceX and Super Micro Computer helped revive investor appetite for artificial intelligence-related stocks, while disappointing guidance from Netflix weighed on its shares.
The tech-heavy Nasdaq Composite gained 1.05% to 26,702.86. The S&P 500 rose 0.58% to 7,757.22, while the Dow Jones Industrial Average advanced 0.69% to 52,856.09.
The gains came as investors assessed fresh evidence of demand for AI infrastructure amid concerns about the sustainability of heavy spending on data centres and computing capacity.
Results from SpaceX and Super Micro provided some reassurance that demand across the AI ecosystem remained resilient.
SpaceX surges as revenue growth and merger developments lift sentiment
SpaceX shares climbed 7% after the rocket and space technology company reported a 161% increase in third-quarter revenue.
The company also recorded its first profit as a publicly traded business.
Chief Executive Elon Musk said SpaceX and Tesla had established special committees to discuss a potential merger.
His comments helped lift Tesla shares by approximately 3.4% ahead of the electric vehicle manufacturer’s quarterly earnings report, scheduled for after the market close.
SpaceX’s artificial intelligence business expanded ninefold, adding to investor interest in companies linked to the technology.
The results helped reinforce expectations that demand for AI-related infrastructure could continue to support growth across the sector.
The broader technology sector benefited from the improved sentiment.
The S&P 500 information technology sector gained 1.65%, while the Philadelphia Semiconductor Index advanced 1.96%, recovering some ground after a prolonged period of losses.
Advanced Micro Devices rose almost 4%, while Nvidia gained more than 2%.
Micron Technology and Marvell Technology also advanced by more than 1.7%, and the VanEck Semiconductor ETF increased 1.89%.
Super Micro forecast supports AI infrastructure stocks
Super Micro Computer was among the S&P 500’s strongest performers, with its shares rising more than 9% after the AI server maker issued an upbeat outlook.
The company forecast quarterly revenue and profit margins above Wall Street expectations, signalling continued demand for AI servers and related infrastructure.
Its results also supported gains among other hardware manufacturers, with Hewlett Packard Enterprise rising 3.7% and Dell Technologies gaining 5.2%.
The rebound followed a difficult period for AI-linked stocks, which faced selling pressure last week as investors questioned whether companies could generate sufficient returns from their substantial infrastructure investments.
Concerns intensified around debt-financed AI expansion, particularly among data centre operators such as CoreWeave.
Investors have increasingly focused on borrowing costs, capital requirements and whether future demand will justify current spending levels.
Wednesday’s gains suggested that stronger corporate results could help stabilise sentiment, although questions about the long-term profitability of AI investments remain relevant.
Netflix falls as forecast disappoints investors
Not all technology stocks participated in the rally.
Netflix shares fell 5.3% after the streaming company issued a weaker-than-expected fourth-quarter profit forecast. Its full-year revenue outlook also disappointed investors, and the company lowered its advertising revenue guidance for the year.
Alphabet shares declined 1.6%, while the S&P 500’s communication services sector fell 1.19%.
AT&T dropped 6.4% despite beating third-quarter revenue and profit expectations and raising its annual profit forecast.
Elsewhere, Abbott Laboratories fell 2.1% after lowering its 2026 sales growth forecast, citing weakness in its medical device business.
The latest results have offered support to AI-related shares, but investors remain focused on whether strong demand can translate into sustainable profits.
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