Musk said power, cooling, and electrical equipment infrastructure are “somewhat of a limiting factor” for the AI buildout.
- Musk’s rocket company posted revenue and earnings that beat Wall Street estimates, largely bolstered by a run-up in its superintelligence segment.
- The CEO said SpaceX has a “highly proprietary” plan to reach 20 GW of power and cooling by the end of 2027, including “many different sources of power, not just gas turbines.”
- Shay Boloor, Chief Market Strategist at Futurum Equities Research, noted in a post on X that BE could be one of the biggest beneficiaries of Elon Musk’s comments.
Shares of Bloom Energy Corp. (BE) led a surge in energy stocks overnight on Tuesday after SpaceX (SPCX) CEO Elon Musk said that the actual constraint on growing “superintelligence” is power and cooling infrastructure rather than semiconductors.
BE stock jumped nearly 6% higher in extended trading hours. Meanwhile, nuclear power companies Oklo Inc. (OKLO), NuScale Power Corp. (SMR), and X-Energy Inc. (XE) also climbed about 2% each, while Nano Nuclear Energy Inc. (NNE) gained 1.5%.
Musk Emphasizes Power Needs For AI Scaling
In its third-quarter earnings report on Tuesday, Musk’s rocket company posted revenue and earnings that beat Wall Street estimates, largely bolstered by a run-up in its superintelligence segment.
AI-related revenue totaled $7.56 billion, surpassing even Starlink segment revenue.
“As I think people are starting to realize, the constraint on deployment of superintelligence is more in power and cooling and infrastructure than it is in chips,” Musk said in a call with investors.
He added that because power, cooling, and electrical equipment infrastructure is “somewhat of a limiting factor,” SpaceX aims to add an incremental 20 gigawatts of power-cooling infrastructure next year to ensure it doesn’t constrain build-out.
Musk added that the “highly proprietary” plan to reach 20 GW of power and cooling by the end of 2027 would include “many different sources of power, not just gas turbines.” Beyond renewables such as solar and wind, Musk said the company would explore “every other source of power that we can obtain.”
Impact On BE, OKLO, SMR, XE, NNE Stocks
The group of fuel cell and nuclear energy stocks climbed as the sentiment for AI-driven power companies jumped on Musk’s comments.
Shay Boloor, Chief Market Strategist at Futurum Equities Research, noted in a post on X that BE could be one of the biggest beneficiaries of Elon Musk’s comments on power, cooling and electrical infrastructure for scaling AI compute.
“That’s huge for Bloom since its fuel cells generate power directly at data centers without turbine blades or years-long grid connections, which could bring billions of dollars of idle GPUs online faster,” he said.
Retail investors also noted the link. One user said, “$BE Elon’s on the SPCX call pumping his capex numbers. There is no ceiling to how much BE is going to make from data center buildouts.”
Another user said, “$BE Musky said we need power, more power. BE to 250+ tomorrow.”
A third user quoted Musk’s comments and linked other energy stocks, saying, “From the $SPCX call: ‘I think people are starting to realize the constraints on deployment of superintelligence is more in power and cooling and infrastructure than it is in chips.’ $OKLO $SMR $XE $NNE.”
Retail sentiment on Stocktwits around BE, OKLO and NNE stocks was ‘neutral’ at the time of writing. Meanwhile, sentiment around XE stock was ‘bullish,’ while SMR stock was ‘extremely bullish.’
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