US stocks open higher as earnings and AI demand shape trading

Equities in the US were higher at the start of trading, giving buyers an early advantage. Investors were digesting the latest earnings from SpaceX and Netflix, an improved outlook from Super Micro Computer, and new AI announcements from Nvidia.

• Dow Jones Industrial Average: The index is slightly higher at the open.

• S&P 500: The index is up 18 points, or 0.24%.

• Nasdaq Composite: The technology-focused index is leading with a gain of 140 points, or 0.56%.

SpaceX advances on AI and Starlink momentum

SpaceX shares rose by roughly 8.6% following the release of a strong third-quarter report. Revenue grew 161% from the same period a year earlier to $14.6 billion. Net income reached $4.4 billion, reversing a loss of $1.1 billion in the year-earlier quarter. The Super Intelligence segment generated $7.6 billion in revenue. Starlink finished the quarter with 13.6 million subscribers, an increase of 1.6 million from the prior period. Quarterly capital spending totaled approximately $19.6 billion.

SpaceX shares have moved back above their 200-hour moving average of $153.81 and their 100-hour moving average of $157.51. The session's low of $158.20 held above the 100-hour moving average, keeping the stock in a bullish position that leaves buyers in control.

Netflix falls as guidance overshadows an earnings beat

Netflix experienced the opposite effect, with its stock falling 4.5%. The company's third-quarter earnings of $0.87 per share exceeded the consensus estimate of $0.82. Revenue rose 11.8% to $12.87 billion. Fourth-quarter guidance was weaker, however, with projected earnings of $0.67 per share below expectations of $0.73 and revenue of roughly $13.44 billion also falling short of estimates. Netflix trimmed its full-year advertising revenue forecast to approximately $2.7 billion from $3 billion, citing a slower rollout of certain advertising capabilities.

The market reaction serves as a reminder for traders: an earnings beat does not guarantee a higher stock price. Investors balance what comes next against what was already priced in. In Netflix's case, worries about the forward outlook are outweighing the positive results from the most recent quarter.

Netflix shares traded at their lowest level since August 2024, hitting a low of $64.10 in the session. The stock had reached a high of $134.12 in July 2025.

SMCI raises its outlook on stronger AI demand

Super Micro Computer added to the positive AI backdrop by sharply raising its preliminary revenue estimate for the September quarter. The company now expects fiscal first-quarter revenue in the range of $18.5 billion to $19.5 billion, up sharply from the prior guidance of $14.5 billion to $15.5 billion, primarily due to stronger demand for AI platforms. At the midpoint, that represents a $4 billion increase, or roughly 27%.

The outlook for profitability has also improved. SMCI now expects gross margins of 12% to 12.5%, compared with an earlier range of 10.4% to 10.8%, mainly reflecting changes in its customer and product mix. Higher revenue combined with better margins gives investors two positives as they await the complete quarterly results due November 3.

SMCI's revised figures provide evidence that demand for AI systems is running ahead of its earlier expectations. That brings Nvidia into focus, as the servers require its computing power. Nvidia's recent announcements highlight how the company is expanding its reach across the infrastructure supporting that demand. Shares were trading up close to 14% in early trading.

Nvidia expands its AI partnerships

CEO Jensen Huang announced a number of partnerships during his keynote address and said Nvidia has invested nearly $10 billion across Europe over the past year, including investments in 14 European startups in the past week.

Among the news, Google Cloud plans to scale Nvidia's Vera Rubin infrastructure to 960,000 GPUs. Partnerships with Schneider Electric and Infineon focus on the data centers and power systems needed to support that expansion, while work with Nokia aims to integrate more AI capabilities into telecommunications networks.

The announcements extend beyond the chips themselves. Nvidia is also expanding its work with Dell, HPE and CrowdStrike across enterprise AI and security. For the broader stock market, this highlights how AI spending reaches across suppliers, infrastructure providers and business applications. Investors will continue to assess how effectively those investments translate into revenue and earnings.

For Nvidia traders, this provides the fundamental context. The price action now needs to align with the narrative. Today's gains give buyers an opportunity, but breaking above resistance — and staying above it — would strengthen the technical case.

Nvidia has tested its 100-day moving average of $214.62 several times since last Wednesday. The price dipped below that longer-term barometer on Wednesday, Friday and again the day before. Each time, however, sellers failed to build downside momentum. Sellers have had their chances to push the price lower, but have so far been unable to trigger a sustained decline.

Today, buyers are pushing back. Nvidia has traded as high as $222.16 and is currently near $221, an increase of about $4.50 on the day. This moves the stock away from the 100-day moving average. Holding support is only the first step, however, and buyers still have work to do before they can claim more control.

The next hurdle comes near $225, where the 200-hour moving average and a broken upward-sloping trendline meet. Getting back above that area would be a positive development. Above that, the 100-hour moving average at $227.55 becomes the next target.

Those levels provide a roadmap. Move above $225 and then $227.55 — and stay above them — and the technical picture improves. Buyers would have reclaimed both hourly moving averages and moved back above the broken trendline, opening the door for a potential run toward the all-time high of $243.37.

Until then, this remains a rebound from important support with resistance still overhead. If sellers stall the recovery at those hurdles, they keep the opportunity to push back toward the 100-day moving average.

The lesson for traders is straightforward: successfully defending support gives buyers a chance. Reclaiming resistance helps confirm they are taking control. Nvidia has accomplished the first part. Now buyers need to follow through.