Look, I know what you’re thinking. “Space stocks? Really? Didn’t we already try this in 2021 when Virgin Galactic crashed harder than my New Year’s resolutions?”
Fair point. But hear me out – 2026 might actually be different. And no, this isn’t just me being optimistic after too much coffee.
Three things are lining up that could send space stocks into actual orbit (pun absolutely intended):
1. Uncle Sam Just Got Serious About Space
The White House dropped a space executive order in December that’s basically saying “Hey NASA, stop taking forever and start buying from actual companies.” They want Americans back on the moon by 2028, a commercial space station to replace the ISS by 2030, and – get this – space-based nuclear power.
The best part? They’re telling government agencies to ditch the old “let’s spend 10 years and $50 billion on one satellite” approach and start buying stuff that actually works. When Washington changes how it hands out contracts, different companies start winning. And winning companies make shareholders happy.
2. AI is Going to Space (No, Seriously)
Remember when “data centers in space” sounded like something from a bad sci-fi movie? Well, Nvidia is now profiling startups doing exactly that. Google is planning to launch AI data centers by 2027. Even Elon is talking about putting xAI computers in orbit.
Will this replace your local Amazon Web Services data center? Of course not. But Wall Street doesn’t need it to work perfectly – it just needs to be believable enough to get excited about. And “AI infrastructure in space” is exactly the kind of story that makes investors throw money at anything with “space” in the name.
3. SpaceX Might Actually Go Public
Here’s the big one: SpaceX is reportedly eyeing a 2026 IPO that could value the company above $1 trillion. That’s not just big news for SpaceX – it’s like Tesla going public all over again, but for space.
When the cool kid finally shows up to the party, everyone else suddenly looks more interesting. A SpaceX IPO would drag every space-adjacent stock along for the ride, whether they deserve it or not.
The Plays Worth Watching
If you’re thinking about dipping your toes in this cosmic casino, here are the names getting attention:
Rocket Lab (RKLB) just landed an $805 million contract – their biggest ever. They’ve evolved from “we launch small rockets” to “we build entire space systems,” which is exactly what the government wants to buy.
Planet Labs (PL) is up 267% this year because turns out governments really like satellite data when the world feels unstable. Who knew?
The defense giants like Lockheed Martin (LMT) and Northrop Grumman (NOC) are the boring-but-profitable plays – they’ll get their share of the “space superiority” budget no matter what.
The Reality Check
Before you YOLO your retirement into space stocks, remember: these companies are small, volatile, and allergic to bad news. The pattern usually goes: rocket ship up on hype, crash back to earth when reality hits.
But if you’re looking for the next big theme while everyone else fights over the same AI stocks, space might just be the final frontier your portfolio needs.
Just maybe don’t bet the farm on data centers in orbit. Yet.