Stocks Extend Rally as SpaceX and AMD Slide While Nvidia Gains on AI Chip Boost NEW YORK, Aug. 5, 2026 — U.S. stocks climbed on Wednesday, extending this week’s market rally as investors continued to bet on resilient corporate earnings and easing geopolitical concerns. While the broader market traded higher, shares of SpaceX and Advanced Micro Devices (AMD) came under pressure following developments tied to artificial intelligence investments and chip procurement.
Market sentiment remained broadly positive, with major indexes advancing as traders looked beyond recent volatility fueled by geopolitical tensions and focused instead on company earnings and expectations for continued economic growth.
Analysts said the latest gains suggest investors believe the current rally may still have room to continue, supported by strong corporate results and improving confidence across several sectors.
SpaceX Shares Tumble Despite Strong Earnings
One of the biggest movers was SpaceX, whose shares fell more than 10% despite reporting quarterly results that exceeded Wall Street expectations.
The aerospace company posted stronger-than-expected revenue and earnings, reflecting continued growth in its launch business and satellite operations. However, investors reacted negatively after the company disclosed plans for significantly higher spending on artificial intelligence infrastructure.
The announcement signaled that SpaceX intends to make substantial long-term investments in AI technologies, a strategy that some investors fear could weigh on profitability in the near term through higher capital expenditures.
Although analysts generally view AI investment as strategically important, markets often react cautiously when companies announce major spending plans that could reduce short-term earnings.
AMD Falls as Nvidia Wins AI Business
Shares of Advanced Micro Devices (AMD) also declined despite the company reporting record sales.
Investor sentiment weakened after Elon Musk said SpaceX would exclusively use AI chips supplied by Nvidia, rather than processors from AMD.
The comments were interpreted as another significant commercial victory for Nvidia, which has maintained a dominant position in the rapidly expanding market for AI accelerators and data-center chips.
Following Musk’s remarks, Nvidia shares moved higher as investors welcomed the prospect of additional demand from one of the world’s most prominent technology companies.
The development highlights the increasingly competitive race among semiconductor manufacturers to secure contracts linked to artificial intelligence infrastructure, one of the fastest-growing segments of the technology industry.
AI Spending Continues to Shape Markets
Artificial intelligence remains one of the strongest drivers of investor interest across global equity markets.
Technology companies continue investing billions of dollars in advanced computing infrastructure, cloud services, and specialized semiconductors to support increasingly sophisticated AI systems.
While such investments are expected to fuel long-term growth, they can also create short-term pressure on company finances, particularly when capital spending rises faster than revenue.
Market participants are closely monitoring which chipmakers and cloud providers emerge as the biggest beneficiaries of the ongoing AI expansion.
Oil Prices Ease
Meanwhile, oil prices edged lower as investors assessed developments in the Middle East.
Market sentiment improved following reports that regional mediators are working toward a temporary agreement concerning the Strait of Hormuz, one of the world’s most important shipping routes for crude oil.
The United States has indicated that negotiations aimed at reopening the waterway and reducing regional tensions could be nearing an agreement.
Any progress toward restoring normal shipping through the Strait of Hormuz would likely ease concerns about global energy supplies and help stabilize oil markets.
However, uncertainty remains.
Recent attacks targeting commercial shipping have continued despite diplomatic efforts, and Iran has maintained its demand to collect transit-related fees, raising questions about whether a lasting agreement can be reached.
Energy traders remain cautious as negotiations continue, recognizing that any renewed disruption in the strategically vital waterway could quickly push oil prices higher.
Investors Watching the Road Ahead
Despite isolated declines in high-profile technology stocks, broader market sentiment remained constructive as investors weighed strong corporate earnings against ongoing geopolitical risks.
The contrasting performances of SpaceX, AMD, and Nvidia underscore how artificial intelligence continues to reshape investor expectations across the technology sector, with companies’ AI strategies increasingly influencing market valuations.
At the same time, developments in the Middle East remain an important factor for global financial markets, particularly for energy prices and inflation expectations.
As earnings season continues and diplomatic negotiations progress, investors are expected to closely monitor both corporate guidance and geopolitical developments for signs of whether the current market rally can maintain its momentum in the weeks ahead.
