What Happened?
Shares of aerospace and defense company Rocket Lab (NASDAQ: RKLB) jumped 3.7% in the afternoon session after the stock's positive momentum continued as the company announced it will receive a $23.9 million award under the CHIPS and Science Act and is opening its new Neutron launch complex this week.
The government funding is designated to expand U.S. manufacturing capacity for space-grade solar cells and electro-optical sensors, which are critical for national security missions.
Adding to the bullish sentiment, Rocket Lab is also set to open its Neutron launch complex in Virginia, a key step toward the first flight of its larger, reusable rocket targeted for before the end of the year. The news follows the company's 70th successful Electron mission over the weekend and the recent acquisition of Geost, a developer of advanced sensor payloads, further enhancing its position as a key contractor for U.S. defense projects.
After the initial pop the shares cooled down to $48.92, up 3.6% from previous close.
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What Is The Market Telling Us
Rocket Lab’s shares are extremely volatile and have had 75 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 10.2% on the news that it announced a significant expansion of its U.S. semiconductor manufacturing operations, supported by a $23.9 million government award.
Rocket Lab is up 96% since the beginning of the year, and at $48.92 per share, it is trading close to its 52-week high of $51.39 from July 2025.
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