Qualcomm Stocks Fall After Musk Denies SpaceX AI Phone Report

Elon Musk on Wednesday publicly rejected a Wall Street Journal report claiming SpaceX demonstrated a prototype AI device using Qualcomm (QCOM) Snapdragon processors to investors, calling the story 'utterly false' on social media platform X. The denial triggered a stock market reaction, with Qualcomm stocks falling 0.5% and SpaceX (SPCX) shares dropping 7.3% on Wednesday. The WSJ report had stated the device would run on a custom operating system from Musk's xAI division and feature Qualcomm chipsets, prompting initial investor interest before Musk's rebuttal reversed early gains in QCOM stocks.

Wall Street Journal Report Details SpaceX AI Device Concept

The Wall Street Journal reported that SpaceX pitched a handset-like AI gadget during private investor meetings ahead of a future initial public offering, citing people familiar with the matter. The hardware was described as a consumer technology device with a frame sleeker and thinner than an Apple iPhone. According to the publication, the conceptual device was designed to run on a proprietary operating system built to integrate AI software from xAI, the artificial intelligence division SpaceX absorbed earlier this year. The report stated the technology would be powered by Qualcomm Snapdragon chipsets. Sources cited in the WSJ article noted SpaceX communicated to investors that the project remained highly experimental with an evolving design and no certainty the device would be mass-manufactured or reach the commercial market.

Qualcomm and SpaceX Stocks React to Musk Denial

Qualcomm stocks reversed early gains to fall 0.5% on Wednesday following Musk's denial on X, marking the fourth consecutive session of losses for QCOM. SpaceX shares fell 7.3% on Wednesday at the time of reporting. Retail sentiment on Stocktwits for Qualcomm was categorized as 'extremely bullish' with 'high' message volumes, while sentiment for SpaceX was 'bearish' with 'low' message volumes. Year-to-date performance data showed QCOM stocks rose 5.3% and SPCX gained 5%.

FAQ

What did Elon Musk say about the SpaceX AI phone report?

Elon Musk called the Wall Street Journal report claiming SpaceX demonstrated an AI device prototype to investors 'utterly false' on social media platform X on Wednesday, without providing further details.

How did Qualcomm stocks react to Musk's denial?

Qualcomm (QCOM) stocks fell 0.5% on Wednesday after Musk's denial, reversing early gains and marking the fourth straight session of losses for the chipmaker.