Space may be the next frontier for investors who want their portfolios to keep accelerating upward. Virgin Galactic Holdings Inc. (ticker: SPCE) turned heads a few years ago with its space tourism pursuits, but the industry has evolved light years from where it was then. Lunar resource extraction can bring more resources to Earth, low Earth orbit satellites have onboard artificial intelligence edge computing, and rockets that can land themselves have made the industry lucrative while reducing operating costs.
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Space Exploration Technologies Corp. (SPCX), better known as SpaceX, recently became a publicly traded company in the world’s biggest-ever IPO. CEO Elon Musk intends to move massive amounts of AI compute into orbit, which would lead to AI data centers in space.
It’s not as farfetched as it sounds. For example, Nvidia Corp. (NVDA) is hiring an orbital data center system architect, showing that the leading AI chipmaker wants a front-row seat when data centers are launched into space.
SpaceX is reportedly scaling back its Falcon 9 satellite rideshare program to focus on Starship, which is set to launch its 13th test flight on July 24 after a weeklong delay due to previous rocket-engine trouble.
Wondering which other space stocks and related exchange-traded funds, or ETFs, are worth monitoring? These picks could be headed for new heights:
| Space Stock/ETF | YTD Performance | 3-Year Return* |
| Rocket Lab Corp. (RKLB) | +0.3% | +110.5% |
| AST SpaceMobile Inc. (ASTS) | -18.5% | +146.1% |
| Kratos Defense & Security Solutions Inc. (KTOS) | -34.9% | +51.0% |
| Nokia Corp. (NOK) | +51.7% | +37.2% |
| Viasat Inc. (VSAT) | +115.5% | +33.4% |
| Procure Space ETF (UFO) | +13.3% | +31.1% |
| iShares U.S. Aerospace & Defense ETF (ITA) | +11.1% | +27.9% |
*Annualized return as of July 23.
Rocket Lab Corp. (RKLB)
Rocket Lab launches satellites into space on rockets that can land themselves. Since these satellites are critical for Wi-Fi, telecom, the defense industry, environmental monitoring and other applications, Rocket Lab attracts customers with deep pockets.
Governments and corporations turn to Rocket Lab for private, dedicated launches that give them full flexibility regarding when and where to launch satellites. Other satellite-launching models offer less flexibility and require ridesharing, similar to taking public transportation versus getting a limousine just for you.
Rocket Lab is already generating revenue while exhibiting strong demand for its services. The company flew a record 21 missions with Electron and HASTE rockets with a 100% success rate. That was enough to bring in $602 million in revenue in 2025, representing 38% year-over-year growth.
Rocket Lab is currently sitting on a $2.2 billion backlog, which is up by 20% in the recent quarter, sequentially. As Rocket Lab continues to scale its number of missions, its revenue should continue to surge. Rocket Lab CEO Peter Beck touted “a record number of significant new contracts signed, and strategic acquisitions secured” when discussing first-quarter results.
AST SpaceMobile Inc. (ASTS)
AST SpaceMobile is building a space-based cellular broadband network that aims to provide 4G and 5G internet worldwide. The company has been building connections and enhancing its technology for multiple years, but 2025 was the first year it became a revenue-generating business. AST SpaceMobile closed out the year with $70.9 million in revenue, but momentum is accelerating.
Q1 revenue came in at $14.7 million, and the company said that it is on track to generate $150 million to $200 million in full-year 2026. AST SpaceMobile cited mobile network partners and the U.S. government when giving the projection.
George Kailas, founder and CEO of Prospero.ai, an AI-driven stock-picking and signal platform for retail investors, explains that AST SpaceMobile has tangible revenue and tailwinds, which make it less risky than other high-growth stock picks.
“It’s important to distinguish between ‘hype’ and more clearly defined revenue paths. When Tesla Inc. (TSLA) investors get excited about potential future Optimus revenues, the numbers are still highly speculative,” he says. “By contrast, AST SpaceMobile already has approximately $1.2 billion in contracted revenue for 2027.”
AST SpaceMobile also has more than $3 billion in cash and equivalents on its balance sheet to fund its ambitions, and its fully subscribed $1 billion in convertible senior notes with a 1.625% APR, due in 2034, show that institutional investors feel confident about its long-term prospects.
“Not only is ASTS in the right subsector to capture major growth potential, but we are particularly bullish because of its global roster of telecom partners, which helps validate the business model and supports long-term revenue visibility,” Kailas says.
Kratos Defense & Security Solutions Inc. (KTOS)
Kratos Defense & Security Solutions’ share price has been volatile this year. It’s down by about 35% despite strong fundamentals and remains up by 80% over the past five years. Defense contracts are the main revenue generator for this company, making it a good hedge against conflicts in the Middle East and other parts of the world.
Despite the recent pullback, Kratos continues to grow. First-quarter revenue reached $371 million, which was up by 22.6% year over year. Kratos also raised its full-year guidance, with CEO Eric DeMarco highlighting the “generational recapitalization of the U.S. defense industrial base” that is underway.
Kratos’ unmanned drones, air defense systems, satellites, missiles and radars should help it gain market share as the military looks to new technology for future warfare. Kratos ended 2025 with a $1.6 billion consolidated backlog and a $13.7 billion bid and proposal pipeline. The total consolidated backlog jumped to $2 billion in Q1, marking roughly 25% in sequential growth.
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Nokia Corp. (NOK)
Space exploration introduces many possibilities, but there’s no point if the satellites can’t connect with terrestrial sites. Nokia forms the link that transmits data from space into technology on the ground. Nokia’s radio access network software and hardware connects smartphones to satellites. It forms the basis for 4G and 5G smartphone connections with the help of orbital satellite providers.
Nokia’s AI-RAN technology also aims to bridge the gap between orbital compute and real-world applications. Designed to streamline the transition from 5G to 6G, AI-RAN optimizes spectrum efficiency across ground base stations and satellite links. The company recently also landed a long-term partnership with Nvidia to take AI-RAN mainstream.
Nokia recently marked a major milestone with its new technology: It released the industry’s first commercial AI-RAN platform, which Nokia CEO Justin Hotard says is “the biggest innovation in radio in decades.”
Viasat Inc. (VSAT)
Viasat is a global communications company that provides high-speed satellite broadband, secure networking systems and in-flight Wi-Fi. It has commercial and government contracts lined up, and demand for broadband satellite services “remains both highly competitive and rapidly growing,” according to the company’s Q4 FY26 shareholder letter.
Data centers in space came up twice in Viasat’s recent shareholder letter. The company views it as a long-term opportunity that will boost the demand for its broadband satellite services. Viasat also said that its new VS-3 satellites “set new commercial standards for solar power generation and thermal dissipation,” which brings the world closer to data centers in space.
If the data center buildout scales in orbit as it has on Earth, it can translate into a massive payday for Viasat and its investors. The company is still losing money, but a $34 million net loss in fiscal 2026 is a meaningful year-over-year improvement compared to a $575 million net loss in fiscal 2025.
Procure Space ETF (UFO)
If you’re looking to spread your investment across multiple companies, the Procure Space ETF offers exposure to pure space stocks as it aims to provide “diversification beyond the limitations of solely earthbound companies.”
The fund’s 13% year-to-date gain is outpacing the S&P 500, and its 39% return over the past year easily outperformed the famed index. Those gains help justify the ETF’s 0.75% expense ratio. The fund currently has $613 million in assets.
UFO’s top three holdings are Viasat, Sirius XM Holdings Inc. (SIRI) and Garmin Ltd. (GRMN), making up roughly 18% of the fund’s total assets. Overall, UFO has about 65 stocks in its portfolio.
iShares U.S. Aerospace & Defense ETF (ITA)
The iShares U.S. Aerospace & Defense ETF offers more diversification in terms of industry. Some of the stocks in this fund are space stocks, but others are in the more general aerospace industry. The fund primarily focuses on large-cap growth stocks instead of smaller space stocks that come with more risks and higher potential rewards. This setup results in less volatility, but the fund can still deliver some solid gains.
ITA shares are up by 21.6% over the past year and also have an annualized return of 18.3% over the past five years. Its top three holdings — GE Aerospace (GE), RTX Corp. (RTX) and Boeing Co. (BA) — make up more than 47% of total assets. ITA has a 0.38% expense ratio.
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7 Best Space Stocks and ETFs to Buy in 2026 originally appeared on usnews.com
Update 07/24/26: This story was published at an earlier date and has been updated with new information.
