We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Beyond Launch: Rocket Lab's Push for Semiconductor Dominance
Read MoreHide Full Article
Key Takeaways
Rocket Lab is ramping up semiconductor production to meet rising demand in space and defense.
The $23.9M CHIPS Act award will help expand its Albuquerque facility to nearly 35K wafers monthly.
Expansion supports U.S. spacecraft makers with secure, domestically produced semiconductors.
Rocket Lab USA, Inc. (RKLB - Free Report) , a prominent forerunner in launch services and space systems, is stepping up its presence in semiconductor manufacturing to meet rising demand for advanced, space-grade semiconductor technologies. The semiconductor industry has been growing rapidly as satellites, defense programs and commercial applications increasingly rely on secure and high-performance components.
In particular, RKLB specializes in high-efficiency, radiation-hardened, space-grade compound semiconductors used in solar cells and electro-optical sensors for critical missions. Its technologies have already supported landmark projects such as NASA’s Artemis lunar program and the James Webb Space Telescope, placing Rocket Lab in a strong position as demand increases.
In December 2024, Rocket Lab secured a $23.9 million award from the U.S. Department of Commerce under the CHIPS and Science Act to expand its semiconductor manufacturing capacity at its Albuquerque, NM facility. Through these investments, the company plans to double production from 20,000 wafers to nearly 35,000 wafers per month and supply U.S. spacecraft manufacturers with domestically produced semiconductors.
No doubt this expansion, once fully realized, should play a critical role in strengthening Rocket Lab’s position in the expanding semiconductor market, backed by increasing utilization of semiconductors in space and defense capabilities.
Other Stocks Advancing Semiconductor Capabilities
Like Rocket Lab, other aerospace and defense stocks like Northrop Grumman Corporation (NOC - Free Report) and L3Harris Technologies (LHX - Free Report) are also making progress in semiconductor technologies.
Over the decades, Northrop’s microelectronics technologies, made from semiconductors, have played a critical role in national security by supplying trusted microchips to defense programs and military systems. Its Advanced Technology Lab in Linthicum Heights, MD, operates a semiconductor foundry and testing center that produces custom radiation-hardened chips for the Department of Defense and other government clients.
On the other hand, L3Harris’ microelectronic components play a crucial role in the success of missions across multiple domains. Impressively, LHX’s microelectronics go beyond traditional circuit cards or electronic components to create a customized solution for each customer, so that they meet the specific needs of any mission.
RKLB’s Price Performance, Valuation and Estimates
Shares of RKLB have gained 702% in the past year compared with the industry’s 39.3% growth.
Image Source: Zacks Investment Research
The company shares are trading at a premium, with its forward 12-month Price/Sales being 30.20X compared with its industry’s average of 10.28X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RKLB’s near-term earnings has improved over the past 60 days.
Image: Bigstock
Beyond Launch: Rocket Lab's Push for Semiconductor Dominance
Key Takeaways
Rocket Lab USA, Inc. (RKLB - Free Report) , a prominent forerunner in launch services and space systems, is stepping up its presence in semiconductor manufacturing to meet rising demand for advanced, space-grade semiconductor technologies. The semiconductor industry has been growing rapidly as satellites, defense programs and commercial applications increasingly rely on secure and high-performance components.
In particular, RKLB specializes in high-efficiency, radiation-hardened, space-grade compound semiconductors used in solar cells and electro-optical sensors for critical missions. Its technologies have already supported landmark projects such as NASA’s Artemis lunar program and the James Webb Space Telescope, placing Rocket Lab in a strong position as demand increases.
In December 2024, Rocket Lab secured a $23.9 million award from the U.S. Department of Commerce under the CHIPS and Science Act to expand its semiconductor manufacturing capacity at its Albuquerque, NM facility. Through these investments, the company plans to double production from 20,000 wafers to nearly 35,000 wafers per month and supply U.S. spacecraft manufacturers with domestically produced semiconductors.
No doubt this expansion, once fully realized, should play a critical role in strengthening Rocket Lab’s position in the expanding semiconductor market, backed by increasing utilization of semiconductors in space and defense capabilities.
Other Stocks Advancing Semiconductor Capabilities
Like Rocket Lab, other aerospace and defense stocks like Northrop Grumman Corporation (NOC - Free Report) and L3Harris Technologies (LHX - Free Report) are also making progress in semiconductor technologies.
Over the decades, Northrop’s microelectronics technologies, made from semiconductors, have played a critical role in national security by supplying trusted microchips to defense programs and military systems. Its Advanced Technology Lab in Linthicum Heights, MD, operates a semiconductor foundry and testing center that produces custom radiation-hardened chips for the Department of Defense and other government clients.
On the other hand, L3Harris’ microelectronic components play a crucial role in the success of missions across multiple domains. Impressively, LHX’s microelectronics go beyond traditional circuit cards or electronic components to create a customized solution for each customer, so that they meet the specific needs of any mission.
RKLB’s Price Performance, Valuation and Estimates
Shares of RKLB have gained 702% in the past year compared with the industry’s 39.3% growth.
Image Source: Zacks Investment Research
The company shares are trading at a premium, with its forward 12-month Price/Sales being 30.20X compared with its industry’s average of 10.28X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RKLB’s near-term earnings has improved over the past 60 days.
Image Source: Zacks Investment Research
RKLB stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.