Overview
- Howmet shares dropped roughly 7–8% after Elon Musk posted on Aug. 31 that SpaceX would cast its own industrial gas‑turbine blades and vanes to speed a planned 20 GW behind‑the‑meter power buildout for AI data centers in Bastrop, Texas.
- Wall Street pushed back quickly, with Bernstein and other analysts calling the selloff an overreaction and keeping bullish ratings because SpaceX appears focused on internal needs rather than broad market share.
- Howmet reported stronger‑than‑expected Q2 results, with EPS of $1.33 and revenue of $2.55 billion, said its first new turbine‑blade capacity came online in Q2, and outlined multiple additional expansion projects to meet demand.
- Industry checks show Howmet controls more than half of the industrial gas‑turbine blade casting market and holds long‑term supply agreements with major turbine makers that reportedly run through about 2030, which analysts say gives the company near‑term revenue visibility.
- Manufacturing turbine blades requires specialized foundries, heat‑resistant alloys and coating processes, so analysts warn SpaceX faces significant technical and timing risks to reach commercial volumes inside the often‑cited 18‑month window and that any wider shift to vertical integration would likely play out over years.