The space sector is once again becoming one of Wall Street’s hottest themes, as investors increasingly position for the highly anticipated SpaceX IPO. Enthusiasm surrounding Elon Musk’s company is driving broad gains across rocket launch providers, orbital infrastructure firms, and satellite communications companies. Markets view the potential SpaceX valuation — estimated at as much as $1.75 trillion — as an event that could significantly reshape valuation benchmarks across the entire space-tech industry.
Starship test: explosion fails to hurt sentiment
Despite some technical issues, the latest Starship test flight was largely perceived positively by the market. SpaceX completed the 12th test flight of its Starship system using the new Starship V3 upper stage alongside the redesigned Super Heavy V3 booster. The upper stage successfully deployed Starlink simulators and two test satellites before performing aerodynamic maneuvers ahead of a planned splashdown explosion in the Indian Ocean.
The main issues emerged on the Super Heavy booster side, as its engines failed to properly reignite during the simulated landing sequence. However, the market does not interpret this as a program failure, but rather as another stage in SpaceX’s iterative data-collection process. Investors increasingly understand that controlled explosions remain part of the company’s development philosophy.
Smaller space stocks lead the rally
The latest wave of buying was triggered primarily by the SpaceX IPO prospectus, which for the first time revealed more details about the scale of the company’s business. Beyond rockets, SpaceX is increasingly positioning itself around satellite services, AI, and potentially orbital data infrastructure.
Among the strongest movers in the sector:
- Redwire surged more than 22%, extending its powerful 2026 uptrend.
- Momentus jumped nearly 70%, benefiting from renewed interest in orbital transport and space infrastructure.
- Firefly Aerospace gained almost 18%.
- Rocket Lab rose around 4% and remains one of the most important publicly traded alternatives to SpaceX.
- Intuitive Machines climbed roughly 15%, supported by the growing lunar infrastructure narrative.
- ViaSat moved higher following news of a new military contract worth more than $437 million.
SpaceX could become the “Nvidia of the space sector”
From a capital markets perspective, SpaceX could become for the space industry what Nvidia became for AI. A potential $1.75 trillion valuation establishes a completely new benchmark for the sector and encourages investors to search for the “next SpaceX” among smaller publicly traded companies.
The sector still remains highly speculative, often dependent on distant cash flows and large capital expenditures. However, the SpaceX IPO could fundamentally change how investors perceive the industry — shifting it from a niche technological speculation theme toward a broader infrastructure, defense, satellite communications, and orbital economy investment story.
Redwire shares (RDW.US)
Source: xStation5
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