Asian shares jump on AI trade revival despite SpaceX, AMD setbacks, as oil prices dip – business live

Asian equities surged on Wednesday, buoyed by a revival in the artificial intelligence trade, despite setbacks in the space sector. The optimism stemmed from a strong performance in the Middle East oil market, with Brent crude futures trading under $80 per barrel, as traders eagerly await the outcome of potential interim peace talks in the region.

Technology stocks once again led the charge, with the broader market betting on the transformative potential of AI. The financial performance of Elon Musk's SpaceX, while impressive, also highlighted the company's continued need for substantial funding to maintain its ambitious growth trajectory.

According to market analyst Sam North from the eToro trading platform, SpaceX delivered a debut quarter that was "needed to support a $1.75 trillion valuation." Revenue soared 92% to $7.8 billion, surpassing analysts' expectations, and the company's adjusted EBITDA stood at $3.5 billion, roughly 70% above forecasts.

The standout contributors to SpaceX's stellar quarter included connectivity services, AI applications, and the space business, which generated $962 million. The company boasts an impressive $100 billion cash reserve and a backlog of $47.5 billion in orders, providing ample financial resources to pursue its long-term vision.

Despite these encouraging results, SpaceX's losses of $541 million serve as a stark reminder of the capital-intensive nature of the AI and space industries. The falling revenue per user at Starlink, SpaceX's satellite internet service, underscores the challenges of scaling up globally while maintaining profitability. Furthermore, the company's heavy investment in AI and Starship development will continue to strain its resources.