Why Shares of Rocket Lab Are Soaring Today

Key Points

• Rocket Lab is a leader in launch services.

• The company is expanding its semiconductor manufacturing capabilities, and it plans on opening the launch complex for the Neutron rocket this week.

• Cautious investors may want to wait for a successful initial flight of Neutron before buying Rocket Lab stock.

• 10 stocks we like better than Rocket Lab ›

The Dow Jones Industrial Average and S&P 500 indexes are both nudging lower today. Rocket Lab (NASDAQ: RKLB) stock, however, is moving decisively in the other direction. Shares of the launch services leader are shooting higher today thanks to the company's announcement on Friday afternoon as well as investors' growing confidence in development of the Neutron rocket.

As of 11:31 a.m. ET, shares of Rocket Lab are up 11%.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Rocket Lab can take a step toward proving the naysayers wrong this week

Before the weekend, Rocket Lab announced that it's increasing U.S. investments to grow semiconductor manufacturing capacity, which will shore up the supply chain for space-grade solar cells and electro-optical sensors for national security space missions. To help support the initiative, Rocket Lab has received a $23.9 million award under the CHIPS and Science Act.

The second catalyst pushing the space stock higher today is the company's planned opening of the Neutron rocket launch complex in Virginia on Thursday. In February, Bleecker Street Capital released a short report on Rocket Lab that cast doubt on management's timetable for the Neutron. Whereas the company projected mid-2025 for an initial flight of the new medium-lift reusable rocket, Bleecker Street Capital suggested that a first flight would be more likely in 2026.

On Rocket Lab's second-quarter-2025 conference call, management affirmed its expectation that the first launch of the Neutron rocket will occur before the end of the year.

Is it too late to fly with Rocket Lab stock for space economy exposure?

Rocket Lab's announcement regarding increased investments in semiconductor manufacturing is encouraging, as is the opening of the Neutron launch complex this week. The stock's rise today, however, seems a bit of an overreaction.

A successful launch of the Neutron rocket will be a powerful catalyst for Rocket Lab stock since Neutron will be the only competitor to the Falcon 9 from SpaceX. Investors looking to mitigate risk, though, may want to wait for a successful debut of the Neutron rocket before buying Rocket Lab stock.

Should you invest $1,000 in Rocket Lab right now?

Before you buy stock in Rocket Lab, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rocket Lab wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $649,657!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,993!*

Now, it’s worth noting Stock Advisor’s total average return is 1,057% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Scott Levine 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.