Forget the SpaceX IPO: 3 AI Space Stocks to Buy and Hold Instead

The SpaceX IPO is days away.

The popular space company is planning to go public on June 12 at a share price of $135 and a valuation of $1.77 trillion. The ticker symbol will be SPCX, trading on the Nasdaq Global Markets exchange.

SpaceX generated $18.7 billion of revenue in 2025, so the company's valuation is a big talking point, as it will premiere at about 95 times sales. Morningstar recently valued SpaceX at less than half that ($780 billion).

If you're interested in SpaceX because it provides space and AI exposure, it's not the only game in town. Here are three other space stocks to consider, all trading at cheaper valuations.

Image source: Getty Images.

1. Planet Labs

Founded by ex-NASA scientists, Planet Labs (NYSE: PL) aims to image all of Earth's landmass every day. It operates over 200 imaging satellites, and it sells Earth observation data to customers across several industries, including agriculture, defense, and finance.

AI powers the analytics layer that uses satellite images to provide structured data. Planet Analytics tools detect buildings, roads, vessels, and aircraft, provide early identification of new construction, and identify geographic features. For an example of how this can be beneficial, agricultural companies partnered with Planet Labs can use its data to optimize fertilizer usage and irrigation.

Planet Labs recently reported earnings for the first quarter of its 2027 fiscal year, which ended April 30, 2026. Revenue jumped 42% year over year to a record $94.2 million, and its backlog grew 72% to over $906 million, indicating strong current and future demand. However, Planet Labs hasn't reached profitability yet, and it isn't cheap, trading at 32 times trailing sales (as of June 5). That's a high multiple, but still far below SpaceX's projected valuation.

2. BlackSky

Another option in the Earth observation realm is BlackSky (NYSE: BKSY), a smaller and more specialized satellite imaging company than Planet Labs. It focuses primarily on defense, intelligence, and global security. Partners include the U.S. Department of Defense, NASA, and the U.S. National Reconnaissance Office.

BlackSky stands out for its speed and high-resolution imaging. Its Gen-3 satellites provide 35-centimeter resolution, allowing objects as small as 35 centimeters to be identified. For comparison, Planet Labs satellites provide 200-to-300-centimeter resolution. With the AI-enhanced BlackSky Spectra platform, Gen-3 satellites can deliver intelligence in as little as 60 minutes, which is crucial for organizations that need near-immediate targeting or battle-damage assessments.

Governments are increasingly prioritizing real-time, AI-powered tactical intelligence, driving growth in BlackSky's top-line and backlog. In the first quarter of 2026, it won up to $160 million in new contracts and reported $20.8 million in revenue, with 45% of those sales coming from the U.S. federal government and agencies. It also reported a backlog of $351.6 million. BlackSky doesn't have an out-of-this-world valuation, trading at 12 times trailing sales.

3. Redwire

Redwire (NYSE: RDW) builds space infrastructure, including spacecraft, guidance systems, power systems, antennas, and camera systems. It also manufactures drones and other defense technology.

Redwire uses AI across several areas of its business, and its flagship AI product is Acorn 2.0, a modeling and simulation software platform. Acorn 2.0 uses agent-based modeling tools to simulate complex systems for defense and aerospace customers. Redwire launched Acorn 2.0 last year for select customers, one of them being DeepSat, a space observation company using the platform to optimize its satellite constellations.

This space company has been building momentum, and revenue jumped 58% year over year to $97 million in Q1 2026. Gross margin expanded to 26.6% compared to 14.7% a year prior, and Redwire also reported a record backlog of $498.1 million.

However, Redwire is losing money, and its first-quarter earnings of -$0.40 per share missed expectations. A large portion of the loss came from equity-based compensation, not operational issues, but it's still a sign of the risk this company poses. On a positive note, Redwire trades at 7 times trailing sales, the lowest valuation on this list.

The space sector offers plenty of interesting investment opportunities, even as the SpaceX IPO dominates the headlines right now. Keep in mind that space stocks are in the early stages, which makes them inherently riskier than more established businesses. Be prepared for volatility and size your investments accordingly.

Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BlackSky Technology and Planet Labs PBC. The Motley Fool has a disclosure policy.