SpaceX's "Super Intelligence" Segment Just Made the Stock a Must-Own

Source The Motley Fool

Key Points

  • Space Exploration Technologies saw tremendous growth from its Super Intelligence division during Q3.

  • Sustained growth like it saw in Q3 could lead to strong share price growth.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

This week, Space Exploration Technologies (NASDAQ: SPCX) delivered one of the most impressive quarterly reports I've seen in a while. In particular, the company's "super intelligence" (SI) segment -- what it previously called its AI business -- delivered an incredible performance.

The results from this segment have major implications for the stock's future. Based on the latest figures, SpaceX stock looks like a great buy at current prices, and if SI continues to grow as it has been, it will be a force to be reckoned with.

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SpaceX's logo.

Image source: The Motley Fool.

The super intelligence segment is rapidly expanding

A few months before SpaceX went public, it acquired another Elon Musk-controlled company: xAI. This brought both the xAI artificial intelligence business and social media site X (formerly known as Twitter) under its umbrella.

During Q3, SpaceX's SI division delivered $7.56 billion in revenue, up by 830% from the $813 million it took in during 2025. That's one of the fastest revenue growth rates I've seen in a while. It was also a huge uptick from Q2, when revenue grew at a 213% year-over-year pace to $2.56 billion.

This division also includes X ad revenue, which rose from $454 million in the prior-year period to $538 million, so it doesn't make up much of the total and isn't delivering as much growth, which is fine. The story is SpaceX's AI models (which include subscription platforms) and other infrastructure revenue. This rose from $2.56 billion in Q2 to $7.02 billion in Q3.

That was a huge jump in a short time frame, and there are questions as to whether SpaceX will be able to deliver that kind of growth moving forward.

I think it will. Its SI product lineup (which includes the Grok AI model) is being widely adopted, and with services like Grok Bots bringing always-on agentic AI to the masses, it has massive growth potential.

SpaceX recognizes this, which is why its capital expenditures were $16.4 billion in the quarter for its SI division. That's a huge investment, but when the underlying business is growing at 830%, it makes sense.

However, this is just one quarter. What can investors expect in the future?

Q3 was just the start of something bigger

The odds of SpaceX experiencing growth like that in Q3 and then ceasing to grow are low, if not zero. The reality is that there is massive AI adoption happening both by businesses and individual users, which is leading to one of the biggest revenue growth opportunities in a long time. This is why SpaceX is investing heavily in infrastructure, as it sees the potential for even more growth.

Will SpaceX be able to add another $5 billion in revenue to its SI division from Q3 to Q4? I'm not sure, but I wouldn't be surprised if it does. We're seeing huge breakthroughs in AI monetization at rival players such as Anthropic too.

The question for investors is: What is the right price to pay for a company with a division growing this quickly? Right now, SpaceX stock has a ton of expected future growth priced into it, so its relatively tame 10% rise immediately following earnings -- and its subsequent slide on Thursday back to where it traded before Tuesday afternoon's report -- seems appropriate. However, if AI investors start to latch on to SpaceX stock again, it could presage a much bigger and more durable rise. Furthermore, if SpaceX delivers another quarter like this in Q4, it could confirm a much larger AI growth trend.

As a result, I think SpaceX is finally starting to establish itself as a top AI investment.

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Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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