SpaceX reported strong third-quarter results on October 20, with its artificial intelligence (AI) business showing major growth. The company’s AI segment, called Super Intelligence (SI), was a key highlight of its latest results. SpaceX’s total revenue jumped 161% year over year to $14.6 billion. Revenue from its Super Intelligence business surged 830% year over year to $7.6 billion, showing the sharp rise in demand for AI-related services, according to The Motley Fool.

An acquisition also helped boost SpaceX’s AI revenue. The acquisition, which closed in August, contributed $608 million to the Super Intelligence business during the third quarter. However, the AI unit’s growth remained impressive even after accounting for this contribution.

SpaceX’s results point to continued demand for AI computing power. The company’s strong growth suggests that businesses may continue spending heavily on the computing systems needed to develop and run AI models.

Nvidia and CoreWeave are two stocks that could benefit from this demand. Nvidia supplies the graphics processing units (GPUs) used for AI computing, while CoreWeave rents out AI computing capacity through its network of data centres. Both companies could gain if demand for AI infrastructure continues to rise, according to The Motley Fool.AI-powered hackers exploit PHP flaw as Europe takes government websites offline; NSA warns of cyberattack risksNvidia stock: Why SpaceX’s AI spending mattersSpaceX is spending heavily to expand its AI computing capacity, which could benefit Nvidia.

SpaceX spent $16.4 billion on capital expenditure (capex) for its Super Intelligence business in the third quarter. This was a 245.5% increase from the same period last year.

Some of SpaceX’s AI infrastructure spending is likely going towards Nvidia’s products. As SpaceX expands its computing capacity to meet growing demand, it needs powerful chips and systems to support its AI operations. This creates a potential business opportunity for Nvidia, according to The Motley Fool.

Demand for Nvidia’s older AI chips remains strong, even years after their launch. SpaceX management said that older Nvidia systems, including the H100 graphics processing unit (GPU), are being rented out at higher prices than when they were new. Nvidia launched the H100 in 2022. The high demand for older Nvidia systems suggests that newer products could also attract strong interest. Nvidia’s newer Vera Rubin architecture could benefit from the need for more powerful AI computing systems. However, the demand for newer systems was not directly quantified in the report.

Elon Musk expects the shortage of computing power for advanced AI to continue. SpaceX CEO Elon Musk predicted that the shortage of computing capacity for superintelligence would last for some time. If this happens, companies supplying AI chips and computing systems could benefit from continued demand, according to The Motley Fool.A shortage of AI computing capacity could give Nvidia greater pricing power.

If businesses continue competing for limited computing resources, Nvidia could be in a stronger position to maintain or increase the prices of its products. This could support the company’s business performance.

SpaceX’s results provide fresh evidence that AI infrastructure spending could continue growing. Some investors fear that the AI boom could turn into a bubble, causing Nvidia’s stock to fall. However, continued spending by companies such as SpaceX suggests that demand for AI infrastructure could remain strong for the foreseeable future.

Nvidia remains a leading supplier of GPUs and has expanded its product range. Its position in the AI chip market could help it benefit as businesses invest in the computing power needed to develop and operate AI systems, according to The Motley Fool. Nvidia could remain an investment opportunity despite its strong performance in recent years.

The Motley Fool said the company is well-positioned to benefit from AI computing demand in the medium term and could deliver strong returns. However, future gains are not guaranteed, and the stock remains exposed to the risks of a potential slowdown in AI spending.US Treasury yields fall as investors track Middle East tensions, await US jobless claims dataCoreWeave stock: Strong AI demand supports growth prospectsCoreWeave is another company that could benefit from rising demand for AI computing power.

It operates a network of data centres and rents computing capacity to customers that need resources to develop and run AI systems. CoreWeave has recorded strong revenue growth despite concerns about its future. The company’s revenue increased 112.5% year over year to $2.6 billion in the second quarter, according to The Motley Fool. CoreWeave’s revenue backlog has also increased sharply. The company ended the second quarter with a revenue backlog of $104 billion, up 245.5% from a year earlier.

A revenue backlog represents contracted business that is expected to generate revenue in the future, although the timing of that revenue can vary. CoreWeave added more than $25 billion to its revenue backlog early in the third quarter. This additional backlog was recorded during the first few weeks of the quarter and was not included in the $104 billion figure reported at the end of the second quarter, according to The Motley Fool. Debt remains a major concern for CoreWeave investors. The company is taking on significant debt to fund its plans to expand its AI computing capacity.

This borrowing could create financial pressure, particularly if demand weakens or expected revenue does not arrive as planned. CoreWeave also faces risks because its business depends heavily on a limited number of customers.

Customer concentration means that losing a major customer or seeing that customer reduce spending could have a significant impact on the company’s revenue, according to The Motley Fool.

SpaceX’s results suggest that demand for CoreWeave’s services could remain strong. Musk said SpaceX could rent out its available AI computing capacity several times over if it accepted every request it received. This indicates that demand for computing power is currently much higher than the capacity SpaceX can provide.

SpaceX’s comments point to a potential opportunity for companies that provide rented AI computing capacity. If businesses continue seeking more computing power than providers can supply, companies such as CoreWeave could benefit by expanding their data centres and making more capacity available.

SpaceX CFO Bret Johnsen said new computing deployments are paying for themselves quickly. Johnsen said, “At current pricing, new compute deployments are generating a payback of less than a year.”This suggests that, at current prices and costs, the revenue generated by newly deployed computing capacity can recover its investment in less than a year, according to The Motley Fool.A short payback period could support further investment in AI computing infrastructure.

If new computing systems continue generating enough revenue to recover their costs quickly, companies such as CoreWeave could have a stronger reason to expand capacity despite the large amounts of money involved. CoreWeave could benefit from continued AI demand, but its stock carries greater risks. The Motley Fool said SpaceX’s results and management comments suggest that demand for services like CoreWeave’s could remain strong for some time. This could make the company’s debt concerns less worrying if its business growth continues, although borrowing and customer concentration remain important risks.

CoreWeave could deliver strong returns over the next five years, but investors should weigh the risks.

Its rapid revenue growth, large backlog and the expected need for more AI computing capacity support its growth prospects. However, its future performance will depend on its ability to expand its business, manage its debt and maintain demand from its customers. What this means for Nvidia and CoreWeave stocksSpaceX’s AI growth highlights the broader opportunity in AI infrastructure. Its rising revenue and heavy spending on computing capacity suggest that demand for AI services is creating opportunities for chipmakers and data-centre operators.

Nvidia offers exposure to demand for AI chips, while CoreWeave offers exposure to rented computing capacity. Nvidia could benefit from businesses buying its GPUs and systems, while CoreWeave could gain from customers seeking access to computing power without building all their own infrastructure.

The two stocks come with different risks. Nvidia’s prospects are linked to continued demand for its products and the sustainability of AI infrastructure spending. CoreWeave has additional financial risks because of its debt and customer concentration.

The key question for investors is whether AI spending can remain strong over the coming years. SpaceX’s latest results provide evidence of continued demand, but they do not guarantee that Nvidia or CoreWeave shares will rise. Investors will need to consider each company’s valuation, financial position and ability to turn AI demand into sustainable profits.