The timing is interesting. SpaceX debuted at $135 in June, hit an all-time high of $225.64 on June 16, and has spent most of the months since trading well below that peak.

Also read: AT&T CEO holds firm stance on Elon Musk’s SpaceX phone strategy

Morgan Stanley says Wall Street is missing SpaceX’s AI swarm

Jonas reiterated his Overweight rating and $300 price target on Oct. 14. He said SpaceX’s Distributed Inference Cloud has “the greatest growth potential and is being largely ignored by investors,” and argued the topic is close to breaking out in investor conversations.

He also flagged the corporate, regulatory, and social pushback that is making traditional data centers harder to build, according to Investing.com.

The idea is to link AI agents and robots so they can share computing power across data centers on the ground and nodes in orbit. Jonas expects distributed AI and “physical AI swarms” to become a major investment theme over the next year, though the original note itself was not available for review.

Morgan Stanley thinks the market is barely paying for this. With the stock near $159 earlier this month, the bank estimated that about $127 per share came from the launch and Starlink businesses, leaving only about $32 per share for AI.

Pricing is where Jonas sees the upside. Consensus assumes SpaceX charges about $17.60 per watt for its computing capacity, yet its recent short-term contracts have reportedly been priced at $30 to $50 per watt. Every extra $10 per watt could add more than $40 billion in revenue, TheStreet reported.

SpaceX is quickly becoming an AI company

The numbers are already shifting. In the second quarter, SpaceX reported $7.81 billion in revenue, with about $2.56 billion coming from AI and $4.29 billion from connectivity, which includes Starlink. AI revenue grew roughly 247% from a year earlier, driven mainly by new infrastructure contracts.

Elon Musk has been clear about where he wants the company to go. At an August all-hands meeting, he called AI an “extremely important part of SpaceX’s future” and predicted that “AI revenue will exceed all other SpaceX revenue probably in September,” according to 24/7 Wall St.

Goldman Sachs, which raised its price target to $230 from $220 in October, has also grown more bullish on SpaceX’s AI capacity and revenue prospects, 24/7 Wall St reported.

That build-out takes serious money. SpaceX is reportedly seeking $40 billion in new financing, through bank loans and investment-grade debt, to buy more Nvidia hardware.

Jim Cramer said on Oct. 7 that SpaceX “could end up being Nvidia’s largest client at this pace.” He also cited reports that SpaceX rents spare computing power to Anthropic and Google, according to TheStreet.

The AI push has deep roots. Earlier this year, SpaceX bought xAI, which the company says built the world’s first gigawatt-scale AI training cluster. SpaceX’s June IPO then raised $75 billion at a valuation of roughly $1.7 trillion, the largest public offering on record.

The SpaceX skeptics have a case

Not everyone is sold. DZ Bank analyst Markus Leistner started coverage with a Sell rating and a $100 price target, warning of “crash risk in the valuation orbit.”

He pointed to the $15.83 billion SpaceX spent on AI computing infrastructure in the second quarter alone. SpaceX still lost $541 million in that quarter, even as revenue jumped, 24/7 Wall St noted.

The valuation is another sticking point. One analyst put SpaceX at roughly 60 to 70 times its annualized second-quarter revenue. The Federal Communications Commission has also only accepted the company’s orbital data center application for filing, which starts a review but does not authorize deployment.

Astrophysicist Jonathan McDowell has questioned the plan over cooling and space debris, 24/7 Wall St confirmed.

More SpaceX:

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• Musk called Anthropic ‘evil’; SpaceX’s deal with it nearly doubled
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Even Jonas has a bear case. If AI momentum slows, Starship hits a serious testing wall, or SpaceX needs a large equity raise, he said the stock “could slide toward $100 within 12 months.” Higher computing costs and delays in connecting data centers to power are also on his risk list.

Share supply is another overhang. Further lockup releases are set to free up more stock, including about 28% of locked shares after the third-quarter report, while Musk’s own stake remains locked until June 2027. Short interest reached roughly 31% of the float in early July, according to 24/7 Wall St.

What SPCX investors should watch next

Starship is the near-term swing factor. Flight 15 is expected in late October or early November, with the third-quarter earnings due around the same time. Jonas said a successful Starship catch “could be the biggest positive catalyst for the stock since its IPO.”

Starlink’s mobile ambitions are drawing attention, too. Pivotal Research raised its price target to $230, citing SpaceX’s $8 billion deal for Grain Management’s nationwide 800 MHz spectrum. This still needs approval from the Federal Communications Commission and the authorization of 15,000 direct-to-device satellites. TD Cowen also reiterated its Buy rating.

Even fans are trimming. Cathie Wood’s ARK sold roughly $8.5 million of SpaceX stock on Oct. 6, according to The Motley Fool. Though ARK built the position over the summer, the move looks more like portfolio rotation than a bearish call.

For now, Jonas is betting the swarm story wins out over the skeptics.

Related: Elon Musk makes an audacious claim on the growth of SpaceX

Roads, bridges and other public assets represent one of the largest maintenance challenges governments face, and one of the least technologically sophisticated. ASCE’s 2025 report card gave roads a D+ and bridges a C. Operators manage aging networks under tight budgets, often relying on scheduled inspections and visible damage to decide where money goes. When deterioration goes unnoticed, a manageable repair becomes expensive.

AI is starting to find applications not in consumer software or enterprise productivity, but in the less glamorous work of keeping physical infrastructure functional. A small number of companies are betting there is a substantial market in that shift.

Also read: Meta and Microsoft just sent employees a memo about Anthropic

Infrastructure maintenance is becoming an AI opportunity

The idea behind predictive maintenance is not complicated. Catching a problem early costs less than dealing with it after failure. The challenge for infrastructure is that the information needed to do it has traditionally been scattered and hard to use.

Infrastructure owners already collect substantial amounts of data: inspection reports, contractor records, citizen complaints and satellite imagery. The problem is turning those disconnected sources into a coherent picture of what assets need and when.

Saar Dickman, CEO of Dynamic Infrastructure, said the core AI opportunity is not about any single type of asset or application.

“The most promising application for AI in physical infrastructure today is not a specific application for roads or bridges. It is moving governments and large private infrastructure owners from reactive maintenance to predictive maintenance. This will dramatically improve the infrastructure around us and save governments trillions,” Dickman told TheStreet.

The savings argument depends on whether AI can do something more demanding than flagging visible damage.

A crack in a road or bridge does not reveal its own severity. How serious it is depends on the overall condition of the structure, its role in the wider network and how traffic volume and seasonal weather affect its performance over time.

Understanding those relationships requires AI models that can interpret infrastructure data in context, not just identify individual defects. Getting that right is where most of the technical work still sits.

The biggest obstacle may be organizational

Even if the technology works, it will not automatically change how infrastructure gets managed. The harder problem may be the organizations that own and maintain public assets.

Most infrastructure owners operate under annual budget cycles and established procurement procedures. The standard process is identifying what is broken, estimating the repair cost and deciding when it can be funded.

Predictive maintenance asks something different. It requires investing in a potential problem before it becomes urgent, even when other visible needs are competing for the same money.

The data needed to support that shift is largely already in place. Public works departments, contractors and inspection teams document infrastructure extensively. The gap is not information. It is what organizations do with it.

Infrastructure managers are used to asking what is broken today. The shift to predictive maintenance requires asking what is likely to fail next, a different kind of question that needs different processes and different planning assumptions.

Accurate predictions about future maintenance needs do not help much in agencies that only fund repairs after something breaks. Getting the technology to work is one challenge. Getting the organization to use it is often a bigger one.

Where investors could find the opportunity

The commercial opportunity extends beyond companies building AI models. Infrastructure operators need software that pulls together inspection records, asset databases and operational workflows in ways their existing tools were not built to handle. Getting ahead of a maintenance problem early enough to avoid a more expensive repair is a clearer value proposition than generating sophisticated output that does not change what actually happens.

“The technologies that will benefit most from this shift are those that connect siloed information locked in different systems to organizational processes that directly affect time and material consumption and savings,” Dickman added.

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The opportunity could reach across multiple stages of the infrastructure lifecycle. Better data about asset performance could reshape decisions about materials procurement, repair scheduling and where capital investment is directed.

Maintenance activities could become more accurate and less frequent, with fewer materials required, changing the economics of how infrastructure networks are run.

For investors, the key question is whether these technologies can show measurable results in the field. Infrastructure owners will want evidence that AI improves decisions or reduces costs, not just that it produces sophisticated output.

Public procurement moves slowly, and existing infrastructure systems were not built with modern data integration in mind. Agencies responsible for roads and bridges are also not inclined to change how they make decisions based on AI assessments they cannot yet verify. When public safety is involved, the confidence bar is higher than in most industries.

Those dynamics could favor companies that understand both the technology and how infrastructure operators actually work, including the budget cycles, procurement constraints and the workflows through which maintenance decisions get made.

A different kind of AI growth story

AI’s move into physical infrastructure is a different story from the race to build more powerful models or reach more consumers. Value here will be measured by whether the technology can solve operational problems that have persisted for decades, not by how a product demo looks.

Infrastructure will still require physical inspections, skilled workers and significant capital. AI is not a replacement for any of that. Its potential lies in helping operators determine where attention is most needed and when intervention makes the most sense.

Public infrastructure spending run into trillions globally, and a meaningful portion of that goes toward maintaining assets that are deteriorating faster than they are being replaced. Shifting even a fraction of that spending from emergency repairs to earlier, cheaper interventions would be worth a great deal to the companies that make it possible. The technology sector has spent years scanning for its next major market. Infrastructure has been sitting there the whole time.

Related: Microsoft’s CEO says AI industry is skipping a step that could matter a lot

That same mindset is playing out beyond jewelry counters.

Gold has become expensive enough to discourage physical buyers, even as investors continue to hold it for protection against uncertainty.

Moreover, gold hasn’t been delivering the reassurance that people typically associate with a safe haven. Rising interest rates and a stronger dollar have helped weigh on prices despite geopolitical turmoil.

Now, Bank of America is warning about a divide. In an October 12 report shared with me, its analysts said buying from important sources of physical demand has weakened, while substantial holdings in gold funds could become a vulnerability if investors start selling.

Yet the bank is still forecasting higher prices next year.

That leaves an interesting question about what’s missing from gold’s rally. Are buyers willing to pay today’s prices, or are the economic conditions that would bring them back?

Bank of America warns gold buyers are pulling back despite record ETF holdings

Bank of America’s October 12 report points to an unusual split in the gold market.

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The bank identifies that investors continue to hold large positions in gold-backed funds, but several important sources of physical gold demand have weakened.

The bank listed gold at $4,176 an ounce in its forecast table and expects prices to average $4,000 during the fourth quarter. For perspective, according to Reuters, spot gold traded at $4,188.27 per ounce on October 13, 2026.

Its demand tracker explains some of the caution.

Purchases across the market participants it monitors were down 16.6% year over year in the latest reading. Indian gold imports fell 77.8%, while Chinese imports rose 39.3%. Central-bank purchases also increased in that comparison.

In other words, gold doesn’t have a universal buyer shortage. The buyers are behaving differently. Moreover, the contrast becomes sharper when you look at investment funds.

The World Gold Council reported that physically backed gold ETFs held a record 4,256 metric tons at the end of September, up 67 tons from the previous month. The funds attracted $10 billion in inflows in September, even as gold prices dropped.

Having plenty of gold already in a fund doesn’t guarantee investors will keep adding more.

BofA warns that substantial existing positions could amplify a selloff if fund investors turn into sellers. But its analysts also say they see no wholesale reassessment of gold.

So the bank’s effectively saying that buyers haven’t disappeared, but support is becoming uneven.

Understanding why starts with what physical gold costs shoppers and what higher interest rates offer investors instead.

Gold’s high prices are driving away jewelry buyers as rising rates hurt its appeal

Interestingly, the squeeze is showing up at jewelry counters.

Americans bought 25% less gold jewelry by weight in the second quarter than a year earlier, according to the World Gold Council.

However, that doesn’t exactly mean shoppers stopped wanting gold. Many are choosing lighter pieces or lower-carat designs to make their money go further.

Signet Jewelers CEO J.K. Symancyk described that pressure during the company’s September 9 earnings call.

When higher gold costs reach customers, he said retailers see “some resistance on units and a little bit of pullback,” particularly on lower-priced jewelry and gold weight.

The trend extends overseas.

The World Gold Council reported second-quarter jewelry-demand declines of 15% in India and 28% in China. Shoppers there have also turned to lighter designs and exchanges of old jewelry for new.

But gold hasn’t lost all its buyers.

U.S. demand for bars and coins rose 28% year over year in the second quarter, while global gold ETFs attracted fresh money in September.

People are changing how they buy gold, not necessarily giving it up.

Meanwhile, the wider economy is making gold a difficult safe haven. Bank of America says the Iran conflict has helped drive oil prices higher, raising inflation worries and expectations for Federal Reserve rate increases.

Higher Treasury yields offer investors income that gold cannot, while a stronger dollar makes the metal more expensive for buyers using other currencies.

The question now is what has to change before both shoppers and investors regain confidence.

Bank of America sees $5,000 gold next year, but the Fed holds a key

BofA isn’t calling for an immediate increase in gold prices.

Its October 12 forecast has the metal averaging $4,000 an ounce in the fourth quarter of 2026, then $4,750 in early 2027 and $5,000 in both the second and third quarters. Moreover, its 2027 average is $4,813, not a guaranteed year-end price.

For that recovery to make sense, the pressures hurting gold need to ease. 

BofA points to calmer oil markets, reduced inflation anxiety, a Federal Reserve no longer leaning toward rate hikes, and a dollar that has stopped climbing. Lower inflation-adjusted bond yields would help, too.

There are reasons not to dismiss its optimism. Central bank surveys show an appetite for gold, ETF holdings remain substantial, and miners such as Newmont are generating strong cash flow.

But I wouldn’t treat those strengths as a floor beneath prices. Existing ETF holdings can turn into sales, and costly jewelry can keep shoppers away.

I would watch inflation releases, Fed guidance, ETF flows, and physical purchases. Gold’s buyer problem doesn’t mean its appeal has vanished. 

The unanswered question is whether investors can support prices until traditional buyers return.

Related: Jim Cramer exposes harsh truth about retirement investing

In the second quarter of 2026, the off-price retailer’s comparable store sales climbed 10% year over year, while its operating profit rose nearly 73%, according to its latest earnings report.

Recent Placer.ai data also revealed that foot traffic at Ross Dress for Less stores increased 16.4% year over year, while traffic at dd’s Discounts rose 8.4%.

On an earnings call in August, Ross Stores CEO Jim Conroy said that, despite the current “inflationary economy,” the company is attracting customers from “a broad range of income demographics and age cohorts.

“We saw gains from new and lapsed customers, along with more frequent trips and higher spending from existing customers, reflecting deeper engagement with both of our chains,” said Conroy.

Ross debuts in Massachusetts amid 51 new store openings nationwide

Amid increased consumer demand, Ross has rapidly expanded its store footprint.

Between September and October, the company opened 41 Ross Dress for Less locations and 10 dd’s Discounts stores across 17 states, including Massachusetts for the first time, according to a recent press release. 

“Building on the strong performance of our newer stores, we are excited to open our inaugural stores in Massachusetts while strengthening Ross Dress for Less’ presence in New York and other existing markets,” said Richard Lietz, executive vice president of property development at Ross Stores, in the press release.  

Related: Ross Stores customers will soon feel a notable change in stores

“At dd’s DISCOUNTS, we are pleased to further expand in our established core markets of California, Florida, and Texas,” he continued.

The new store openings complete Ross’ store growth plans for fiscal 2026, which include adding 115 new locations throughout the year. Currently, the company operates 2,377 Ross Dress for Less and dd’s Discounts locations across 45 states, Puerto Rico, the District of Columbia, and Guam. 

Lietz said Ross plans to significantly increase its store count as more customers seek value. 

“We remain confident in the long-term opportunities for both brands,” he said. “As customers increasingly seek great brands at great prices, Ross’ off-price offering continues to resonate, and we believe we are well positioned to grow to at least 2,900 Ross Dress for Less and 700 dd’s DISCOUNTS locations over time.”

Why consumers are turning to Ross and other off-price retailers

Ross isn’t the only off-price retailer that has recently seen a boost in sales. 

TJX Companies revealed in its most recent earnings report that net sales in its TJ Maxx, Marshalls, and Sierra stores increased 3% year over year in the second quarter of 2026. 

Placer.ai data also revealed that while foot traffic at TJ Maxx and Marshalls generally remained near last year’s levels during the quarter, it still outperformed the traditional apparel sector’s 3.5% year-over-year decline. 

U.S. consumers have increasingly been turning to off-price retailers as prices continue to rise nationwide.

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According to Consumer Price Index data from the U.S. Bureau of Labor Statistics, prices for all goods and services rose 3.4% year over year in August. Apparel prices increased 3.6% during that period, while footwear prices also climbed 3.6%.

As prices rise, a survey by Fashion by Informa found that 66% of U.S. consumers are prioritizing value for money when shopping for fashion, far surpassing trendiness, which was cited by only 10%. 

Also, 92% of consumers plan to change their fashion shopping habits, including delaying purchases, spending less, or switching to off-price retailers to save money.

In a July note, Lorraine Hutchinson, senior research analyst at BofA Global Research, emphasized that the “off-price playbook,” in which companies “procure stronger brands at better value,” continues to successfully boost customer spending. 

“The inflationary macro backdrop also creates a good environment for trade-down, allowing consumers to stretch a tight budget, and off-price has responded with sharper values,” wrote Hutchinson. 

Amid this shift in consumer behavior, the global off-price retail market is projected to grow from $349.22 billion in 2025 to $582.14 billion by 2031 at an 8.89% compound annual growth rate (CAGR), according to a forecast from research firm TechSci Research. 

Related: Kohl’s expands in-store partnership as customers look elsewhere

Not everyone watching that capital move thinks it is being deployed wisely.

A growing number of voices are raising questions about whether investors understand what they are actually buying. The worry is not abstract enthusiasm for AI. Capital is moving faster than investors’ ability to evaluate the businesses receiving it.

Broadcom (AVGO) CEO Hock Tan is among those sounding the alarm. His recent remarks at an event in Singapore invoke a principle Warren Buffett has preached for decades. The current moment, Tan suggested, may be testing investors in ways they have not fully acknowledged.

Also read: Warren Buffett has a stark message for stock market investors

Buffett’s ‘circle of competence‘ advice

Buffett has a name for what Tan is describing. In his 1996 letter to Berkshire Hathaway shareholders, Buffett wrote that investors need the ability to “correctly evaluate selected businesses.”

He has long argued that investors do not need to understand everything. What matters is knowing the limits of what they do understand.

The circle of competence does not steer investors away from any particular industry. Buffett has applied it across insurance, retail, energy and consumer brands. What it requires is an honest accounting of where a given investor’s knowledge actually stops, where real analysis gives way to assumption.

That reckoning is most difficult when prices are rising and the headlines are running in one direction.

AI may be the hardest test that principle has faced in a generation.

What Tan said about investors and AI

“A lot of investors have no clue what they are investing in,” Tan said, speaking in Singapore. He described investors who arrive with “extreme expectations” only to find the trade is “almost like they are in a casino.”

The remarks carry weight because Tan is not skeptical of AI. Broadcom has built a significant business supplying custom chips and networking infrastructure to the hyperscalers driving the AI buildout. He is bullish on AI’s long-term importance.

But Tan also said some businesses may simply be “wasting money,” and that profitability across the industry will depend on whether AI delivers real, measurable value to the companies using it.

Investors who cannot assess that are taking on risks they may not recognize.

Why Buffett’s casino comparison matters

Tan’s casino reference echoes language Buffett has used about the broader market. Buffett has compared the current market to a church with a casino attached, warning that investors are in a “gambling mood” unlike anything in his experience.

Two voices at different ends of the market have landed on the same description of investor behavior. One built and held businesses for decades. The other supplies the chips powering the AI buildout.

The dynamic is familiar from other cycles. Prices go up, coverage turns favorable, and the investors who got in early look smart. The question of whether the underlying business justifies the price becomes easier to set aside. At some point a trade built on sentiment needs business performance to catch up, and the two do not always move at the same pace.

The AI trade is particularly vulnerable because the technology is expensive to build, complex to evaluate, and still early enough that the economics of many individual companies are not settled.

The index-fund argument

Buffett has said for years that most individual investors would be better served by a low-cost index fund than by trying to pick individual stocks.

Most investors lack the time, access, and analytical tools to evaluate individual businesses well enough to beat the market consistently. Acknowledging that is not a failure of ambition.

The index argument takes on a specific weight in an AI-heavy market. The largest AI-adjacent companies, including hyperscalers, chip designers, and major platform businesses, have become significant components of the S&P 500.

Broad index exposure already carries meaningful AI weight, without requiring a bet on which individual company ends up with the most to show for the buildout.

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Companies including Meta Platforms (META), Microsoft (MSFT), and Alphabet (GOOGL) have committed hundreds of billions to AI infrastructure and development.

Whether that investment pays off, and for whom, is still being determined.

Questions worth asking before buying in

The warning from Tan does not mean investors should avoid AI-related stocks. It means they should be able to answer some basic questions before buying.

Before investing in any AI-related stock, consider:

• Does the company generate real profits and positive cash flow?
• How much is it spending on AI infrastructure, and can it sustain that spending?
• Is there a clear path to earning a return on those AI investments?
• Is customer demand durable, or driven mainly by experimentation?
• How does the current valuation compare to near-term earnings expectations?
• Would you still want to own this business if AI enthusiasm cooled for 12 months?

Buffett has applied these questions to every investment Berkshire Hathaway has ever made. Feeling uncomfortable asking them about a popular AI stock is itself an answer of sorts.

The harder question for investors

Hock Tan runs a company that depends on AI succeeding. His warning is narrower than it sounds. The gap between AI’s actual potential and investors’ understanding of the individual companies they are buying may be wider than markets are currently pricing in.

The circle-of-competence principle has outlasted every major market cycle because the behavior it describes keeps repeating. Capital goes into things investors cannot properly evaluate, and the reckoning tends to arrive well after the position is already on.

Markets rarely provide much warning before enthusiasm stops being enough to hold prices up.

For investors who cannot answer the basic questions about the AI stocks they hold, broader index exposure may be the more defensible position. The potential of AI can be captured without placing a specific bet on the winner of a race that has not been run yet.

Related: Warren Buffett doubles down on stock market message for 2026

The drop has been quite frustrating for investors because many of them watched JAZZ climb for most of 2026. Although after the pullback, the stock is still up about 26% year to date.

On Oct. 9, Jim Cramer gave JAZZ a thumbs-up during the “Mad Money” Lightning Round. If you’re trying to decide whether now is a good time to buy JAZZ, it’s worth reading what Cramer has to say.

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What Cramer said about Jazz Pharmaceuticals on “Mad Money”

When a caller asked about JAZZ, Cramer said, “You’re starting to go into a very speculative situation where they actually do make money, though,” according to CNBC. “I’m going to say yes to Jazz Pharmaceuticals.”

Jazz already has approved medicines it sells, and the company profits from those sales. It has a price-to-earnings ratio of about 14.9, which is cheap for a drugmaker that sells cancer drugs and is already profitable.

Where Jazz actually makes its money

Jazz Pharmaceuticals has three main products that generate revenue. These products are Xywav for narcolepsy, Epidiolex for rare forms of epilepsy, and Ziihera, which is a new cancer therapy drug.

Out of Jazz’s record second-quarter revenue of $1.2 billion, Xywav brought in $471.2 million, Epidiolex generated $292.1 million, and Ziihera brought in $15.4 million.

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Xywav alone accounted for approximately 525 net patient adds, according to the company’s SEC release, bringing its total active patients to approximately 17,125. Epidiolex sales also increased by 16% compared to the year before.

CEO Renee Gala told investors that the quarter “highlights strong execution and momentum across the business,” and said Jazz is “focused on long-term growth as we prepare to launch Ziihera.”

The FDA approved Ziihera for HER2-positive stomach and gastroesophageal cancer therapy in late August. After the approval, Jazz raised its peak sales estimate for the drug from more than $2 billion to $3 billion to $5 billion.

What investors should consider before jumping in

Wall Street analysts are already updating their opinions on the stock after Ziihera’s introduction.

Needham raised its price target to $310, Deutsche Bank and Canaccord Genuity both raised theirs to $300, and RBC Capital raised its price target from $277 to $299. All those targets are well above where the stock trades today.

However, even with analysts backing the stock, investors should still watch for some risks.

Before the company can reach the peak sales it expects for Ziihera, doctors need to start using the drug, and insurers also have to cover it. The company also faces competition in HER2 cancer treatments, so Ziihera has to prove itself.

Cramer’s “yes” rests on execution. Jazz now has to convert the Aug. 25 Ziihera approval into prescriptions and payer coverage before the stock can grow into analyst targets that sit $60 to $90 above the Oct. 9 close.

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