SpaceX's Next Goldmine

Wall Street sees massive growth potential in SpaceX’s AI business.

Author

Ankit Sinha
June 05, 2026

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Market News

Wall Street Stops Grading on a Curve

Wall Street showed that the AI trade is growing. While Broadcom's underwhelming outlook for AI chip sales sent semiconductor stocks lower and triggered the sector's biggest pullback in months, investors didn't abandon equities altogether but simply looked elsewhere.

The Dow Jones Industrial Average climbed to a record high as money rotated into industries tied to a resilient economy, with roughly 360 S&P 500 companies finishing the day in positive territory. 

Meanwhile, hopes of a diplomatic breakthrough between the U.S. and Iran helped ease geopolitical concerns, sending oil prices lower and supporting the broader market's march toward its longest weekly winning streak since 1985.

Investors are increasingly demanding results rather than simply rewarding any company associated with artificial intelligence. Broadcom's stumble highlighted that even strong AI businesses can disappoint when expectations become too lofty.

As one strategist noted, the problem wasn't Broadcom's quarter; it was the market's setup. Beyond the AI story, optimism remains supported by rising earnings forecasts, a healthy consumer, and improving corporate profitability.

In corporate news:

  • SpaceX continued pitching its IPO story by linking its rocket, satellite, and AI businesses.

  • Blackstone capped redemptions from its flagship private credit fund after a surge in withdrawal requests.

  • Verizon said AI could replace a large share of customer service work.

The market's message was clear: AI remains a powerful theme, but investors are no longer willing to pay any price for it.

Peel Take: The market’s AI obsession is entering a new phase. Investors still love the theme, but they’re becoming much pickier about who deserves premium valuations. In other words, AI is no longer a hall pass for disappointing guidance. The market isn’t abandoning the trade but is finally reading the report card.

What's Ripe

Blackstone Inc. (BX) 7.5%

  • BX rose 7.5% after the firm limited withdrawals from its flagship private-credit fund, even as similar moves across the industry often unsettle investors.

  • The redemption cap came after investors sought to withdraw 10% of the fund, marking a shift from the first quarter when Blackstone was able to meet all redemption requests totaling 7% of assets.

  • Peel Take: Investors appear to be viewing the redemption cap less as a warning sign and more as evidence of strong demand for liquidity in an otherwise healthy portfolio. Unlike traditional mutual funds, private-credit funds are designed with limited liquidity, so redemption gates are often a feature rather than a flaw.

Robinhood Markets Inc. (HOOD) 6.6%

  • HOOD rising 6.6%, Strategy gaining 2.2%, and Coinbase adding 0.6%. The divergence suggests investors were focusing on company-specific catalysts and improving sentiment around the broader digital asset industry rather than short-term movements in cryptocurrency prices.

  • Peel Take: Cr*pto stocks are increasingly trading on factors beyond B*tcoin's price. Investors are betting on growth in trading activity, regulatory clarity, and broader adoption of digital assets, allowing companies like Robinhood and Coinbase to outperform even as cr*ptocurrencies themselves take a breather. It's a sign that the cr*pto ecosystem may be maturing from a one-trade market into a broader industry story.

What's Rotten

Ciena Corp. (CIENA) 13.7%

  • CIENA plunged 13.7% despite reporting better-than-expected fiscal second-quarter earnings and revenue and raising its full-year sales guidance to $6.3 billion, plus or minus $100 million.

  • While the updated outlook topped Wall Street's $6.18 billion revenue estimate, investors appeared to be hoping for an even stronger forecast, particularly given heightened expectations for AI-driven networking demand.

  • Peel Take: Ciena's results are a reminder that in today's market, beating expectations isn't always enough; companies also need to exceed investors' imagination. After months of AI-fueled optimism, the bar has been raised so high that even good news can disappoint if it isn't spectacular.

Broadcom Inc. (AVGO) 12.6%

  • Broadcom shares fell 12.6%, dragging down semiconductor stocks and the broader tech sector. After it issued weaker-than-expected revenue guidance, sparking concerns that the pace of AI-related spending may not be accelerating as quickly as investors had hoped.

  • Peel Take: Broadcom's outlook wasn't disastrous, but it just wasn't enough to justify the sky-high expectations baked into AI stocks. After months of explosive gains, investors are becoming more selective, demanding evidence of sustained growth rather than simply buying anything labeled AI. The AI boom is still alive, but the market is entering a phase where execution matters more than hype.

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Emerging markets weakened after Broadcom’s AI outlook disappointed investors. Which region do you think has the most growth potential over the next decade?

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SpaceX is reportedly preparing for an IPO roadshow. If SpaceX went public tomorrow, would you invest?

Yes, immediately: 23.4% // Maybe after researching: 14.9% // I'd wait and watch: 46.8% // No interest: 14.9%

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Banana Brain Teaser

Previous

Xavier, Yvonne, and Zelda each try independently to solve a problem. If their individual probabilities for success are 1/4, 1/2, and 5/8, respectively, what is the probability that Xavier and Yvonne, but not Zelda, will solve the problem?

Answer: 3/64

Today

In an electric circuit, two resistors with resistances x and y are connected in parallel. In this case, if r is the combined resistance of these two resistors, then the reciprocal of r is equal to the sum of the reciprocals of x and y. What is r in terms of x and y?

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