Neutron reusable launch vehicle
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3 Reasons Why Rocket Lab Stock Is A Millionaire-Maker
The Motley Foolยท 2025-12-07 11:06
Core Viewpoint - Rocket Lab's stock has rebounded significantly after a previous decline, with a potential for further growth driven by upcoming developments and market interest in space-based AI solutions [1][2]. Group 1: Stock Performance - Rocket Lab's stock has increased by 16% from its recent lows, including a notable 10% rise in one day, indicating a recovery phase [2]. - The stock had previously lost 38% of its value over 30 trading days, suggesting that much of the risk has been mitigated [1]. Group 2: Market Trends and Opportunities - OpenAI's interest in acquiring a rocket company to launch AI data centers into orbit may position Rocket Lab as a potential acquisition target, given its market cap of $26 billion [5]. - The trend of placing AI data centers in space is driven by the need for efficient cooling and solar power, which could enhance demand for Rocket Lab's launch services [4]. Group 3: Upcoming Developments - Rocket Lab's Neutron rocket, the company's largest and latest reusable launch vehicle, is expected to launch within a few months, with testing scheduled to complete soon [6]. - Analysts predict that the Neutron rocket will help Rocket Lab achieve profitability approximately one year after its service begins, which could attract more investor interest [7]. Group 4: Valuation Insights - Analysts estimate that Rocket Lab could potentially earn over $5 per share by 2034, suggesting that the current share price may be undervalued at less than 10 times future earnings [9].