In this article, we will look at the 7 Best Space Technology Stocks to Buy Now.
Space-based AI data centers, once deemed fiction, are gaining real-world credibility following SpaceX’s historic IPO, which pushed Elon Musk’s net worth into trillionaire territory. Recently, on June 21, CNBC released a research report noting that the concept of space AI data centers is based on SpaceX’s reusable Falcon rockets, xAI’s compute needs, and Starlink’s satellite technology. Moreover, the recent IPO gives SpaceX the required capital to build this infrastructure.
Many analysts are calling this essential for the company’s valuation. Duncan Davidson of Bullpen Capital told CNBC that space data centers are a big and long-term play. He also cautioned that the economics of this idea still remain marginally low.
The report noted that the case rests on diverging cost trends as launch costs are expected to fall and terrestrial data centers face rising costs from power constraints and political pushback. The IPO of SpaceX has heated up the competition in the Space technology industry as Amazon’s Jeff Bezos is pursuing similar goals through Blue Origin, though he’s more skeptical of short timelines. Moreover, Google is testing solar-powered satellite data centers via Project Suncatcher. Startups like Starcloud, Rocket Lab, and Cowboy Space are also developing hardware and testing components in orbit.
With that, let’s take a look at the 7 Best Space Technology Stocks to Buy Now.
Our Methodology
To curate the list of the 7 Best Space Technology Stocks to Buy Now, we used various rankings from reputable financial media, ETFs, and screeners to aggregate a list of space technology stocks. Next, after sorting the list by market cap and upside potential, we ranked the list in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s hedge fund database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
7 Best Space Technology Stocks to Buy Now
7. Intuitive Machines, Inc. (NASDAQ:LUNR)
Upside Potential: 124.99%
Number of Hedge Fund Holders: 30
Intuitive Machines, Inc. (NASDAQ:LUNR) is one of the Best Space Technology Stocks to Buy Now. Intuitive Machines, Inc. (NASDAQ:LUNR) has fallen roughly 40% over the past month, mainly due to profit-taking after the stock reached an all-time high on May 29. Wall Street remains bullish on the stock, with analysts’ 12-month price target reflecting more than 124% upside from the current level.
Recently, on July 1, Craig-Hallum maintained a Buy rating on the stock with a price target of $42. The firm highlighted NASA’s press conference announcing lunar lander contract awards. During the press conference, Intuitive Machines was awarded $148 million, Firefly Aerospace was awarded $144 million, and Astrobotic got $298 million in contract awards. The firm calls Intuitive Machines and Firefly awards roughly in line with expectations, while Astrobotic’s award came in higher than anticipated.
Craig-Hallum also praised new NASA administrator Isaacman’s approach, citing a steady cadence of well-considered awards, more efficient use of resources, and a strategy focused on partnering with commercial space players.
Moreover, earlier on June 24, Analyst Mike Crawford from B. Riley maintained a Buy rating on the stock with a price target of $45. The analyst noted the recent stock weakness as a buying opportunity and noted that the company is making progress building an end-to-end space and lunar infrastructure stack, backed by a $1.1 billion order backlog. The firm also noted multiple near-term catalysts that could meaningfully grow this backlog and argued the sell-off created an attractive entry point.
Intuitive Machines, Inc. (NASDAQ:LUNR) is a space exploration, infrastructure, and services company. It contributes to the establishment of cislunar infrastructure and helps develop cislunar and deep-space commerce.
6. Rocket Lab Corporation (NASDAQ:RKLB)
Upside Potential: 36.72%
Number of Hedge Fund Holders: 43
Rocket Lab Corporation (NASDAQ:RKLB) is one of the Best Space Technology Stocks to Buy Now. Recently, on July 7, Rocket Lab Corporation (NASDAQ:RKLB) announced full mission success on the US Space Force’s VICTUS HAZE mission, which is a Tactically Responsive Space demonstration.
Management noted that they were able to design, build, and launch a Pioneer spacecraft on Electron within 24 hours’ notice. Later, the team commissioned it and conducted rendezvous and proximity operations to track and photograph a target satellite. All of this was done faster than Space Force’s deadlines.
Notably, the launch occurred just 16 hours and 42 minutes after notice, marking a TacRS record. Moreover, commissioning finished in 38 hours, and RPO operations wrapped in under 59 hours compared to the 84-hour deadline.
That said, earlier on June 30, Bank of America Securities raised the price target from $105 to $115, while maintaining a Buy rating on the shares. The rating came after Rocket Lab Corporation (NASDAQ:RKLB) announced its plan to acquire Iridium Communications. The firm sees this move as a favorable entry into key commercial, government, and defense services markets, suggesting it will strengthen the company’s positioning across multiple high-value customer segments.
Rocket Lab Corporation (NASDAQ:RKLB) is a global leader in launch services and space systems with an established record of delivery success. The company designs and manufactures spacecraft and related components, rockets, and on-orbit management solutions required for the space economy.
While we acknowledge the potential of RKLB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RKLB and that has 100x upside potential, check out our report about the cheapest AI stock.
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