VELO3D stock has staged a remarkable turnaround in 2026, gaining 34% in a single session and heading toward its best week of the year following four consecutive days of gains. According to latest reports, the stock has rocketed over 122% year-to-date as investors seek exposure to the SpaceX IPO through its supply chain relationships. SpaceX uses Velo3D's Sapphire printers for advanced rocket parts and signed an $8 million IP services agreement in 2024, making VELO a direct beneficiary of the space economy expansion. With IPO shares tightly allocated and difficult for most investors to access, the listing has triggered a wave of indirect positioning as traders seek liquid alternatives linked to the same value chain.
Recent market weakness has affected even the most popular AI-related stocks, with SpaceX, Tesla, and Alphabet all experiencing declines as part of a broader tech rout. According to recent market analysis, the setback represents a painful wake-up call that maybe -- just maybe -- the euphoria surrounding the AI movement led too many investors into making too many ill-advised trades at less-than-great prices. The recent market action may also mark a longer-term shift in the market's leaders and laggards, with the current bull market having been underway since late 2022 and technology stocks leading the rebound from the COVID-19 pandemic economic lull. As the cycle moves into the latter half marked by higher inflation and interest rates, value sectors like energy, healthcare, utilities, and consumer staples are expected to lead.
VELO3D has overcome significant financial difficulties through a strong 2026 turnaround, driven by 48% revenue growth, positive gross margins of 17.2%, and a substantial 70% reduction in debt. Through debt-to-equity transactions and a capital raise completed earlier this year, the company cut its outstanding debt by approximately 70%, leaving only about $9 million in remaining obligations. The company has also expanded its production services for defense and energy infrastructure to diversify revenue streams beyond space operations. On Thursday, VELO appointed former Fremont Mayor Lily Mei as an independent member of its Board of Directors, further strengthening its governance structure.
The logic extends to manufacturing in space where energy is effectively free and endless, closer to the sun. According to the analysis reported by Mint, since most of what we build exists only to build other things, the conclusion becomes that the entire industrial chain should remain in orbit, with only finished articles descending to Earth. This approach would eliminate the need to haul raw materials down gravity wells to Earth, making space-based production more economically viable. SpaceX's use of Velo3D's specialized metal 3D-printing systems for complex aerospace components, including parts for next-generation rocket engines, demonstrates the practical application of this strategy.
Retail sentiment around VELO remains 'extremely bullish' with a 302% jump in message volume on Stocktwits, reflecting the excitement around space manufacturing opportunities. One user highlighted their 10,000 shares purchased at $5 in November when whispers of SpaceX and Anduril being customers emerged, emphasizing the importance of doing thorough due diligence. However, the author maintains his standard advice to keep ignoring the news, because it still will not help your portfolio tonight. Despite the transformative potential, the piece concludes that while the conversation cannot be dismissed as noise, it represents speculation about what grandchildren might consider perfectly ordinary in the future. The recent market setback serves as a reminder that diversifying holdings across all styles and sectors remains the higher-odds play for portfolio protection.
