Rocket Lab (NASDAQ:RKLB) stock took flight on Tuesday, climbing as much as 10%. As of 2:51 p.m. ET, the stock was still up 8.4%.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
The catalyst that sent the rocket specialist higher was the latest news about its Neutron rocket.
Image source: The Motley Fool.
To infinity and beyond
In a post on X today, Rocket Lab announced that the Neutron rocket’s second stage — which is responsible for delivering payloads once in orbit — and the accompanying thrust module had departed the factory for the Virginia launch site.
In the wake of this announcement, Cantor Fitzgerald analyst Andres Sheppard reiterated his overweight (buy) rating and $122 price target. That suggests potential gains for investors of 127% compared to Monday’s closing price. The analyst expects a Neutron launch in the second quarter of 2027, giving investors the opportunity to profit from the recent sell-off.
Earlier this month, Rocket Lab announced that it would delay Neutron’s inaugural launch. The flight, originally scheduled for year-end, was delayed until 2027 after the company discovered a defect in the propellant dome.
Rocket Lab stock has been beset by volatility, exacerbated by the recent IPO of Space Exploration Technologies (NASDAQ:SPCX) — aka SpaceX. Ahead of the company’s public debut, Rocket Lab shares took flight, gaining 115% during the first five months of 2026, but have since plunged more than 61% (as of this writing).
Given the boom-or-bust nature of spaceflight, volatility is here to stay, especially since we’re still in the early stages of the “space race.” At 44 times sales, Rocket Lab stock isn’t cheap, but it is less expensive than SpaceX, which sells for 61 times sales. Moreover, as the space race matures, Rocket Lab is poised to shoot for the stars.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger
Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005.
But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout, a massive technology build-out that Google’s CEO says could be more profound than fire or electricity.
While everyone watches the chip designers, one “backbone” company provides the critical technology that Nvidia and AMD literally cannot function without. We’ve detailed this under-the-radar player in our new AI Playbook.
Danny Vena, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
Why Rocket Lab Stock Took Flight on Tuesday was originally published by The Motley Fool
