Rocket Lab USA Soars on Massive Defense Contract Wins

Rocket Lab USA ( (RKLB) ) has risen by 27.27%. Read on to learn why.

Rocket Lab USA shares surged 27.27% over the past week as investors cheered a flurry of contract wins and successful launches that underscore the company’s rapid rise in national security space. The key catalyst was an $816 million prime contract from the U.S. Space Development Agency to build and operate 18 missile-defense satellites for the Tracking Layer Tranche 3 constellation, Rocket Lab’s largest deal to date and one that could grow toward $1 billion through additional subsystem sales. This contract positions Rocket Lab as a serious challenger to traditional aerospace giants and deepens its role in the U.S. missile warning and tracking architecture.

Sentiment was further boosted by the company’s successful first dedicated mission for Japan’s space agency JAXA, which showcased Rocket Lab’s launch reliability and expanded its global footprint. Heavy options activity, with call buying outpacing puts and implied volatility trending higher, reinforced a bullish tone as traders bet on continued upside. Technical indicators now flash a Buy signal, and the stock’s year-to-date performance has been exceptional, supported by strong revenue growth and a growing backlog of government and defense work.

Despite the rally and the company’s expanding contract base, Rocket Lab USA is not without risks. Analysts remain cautious, with at least one AI-driven rating calling the stock Neutral due to ongoing losses, cash flow pressures and a valuation that already prices in a lot of future success. Still, management’s upbeat guidance and the strategic significance of its government contracts are encouraging investors to look past near-term profitability issues and focus on Rocket Lab’s long-term potential as a vertically integrated space and defense prime contractor.