2 Space Stocks I'm Buying on the Dip

U.S. stocks have been on a wild ride lately as President Donald Trump moves toward protectionist economic policies. The benchmark S&P 500 (^GSPC 1.81%) is off 4.3% year to date, while the Nasdaq-100 has dropped 7.4% over this same period. Even artificial intelligence (AI) powerhouse Nvidia has lost 20% of its value so far this year. The sell-off has been unfolding throughout the year and notably accelerated last week, thanks to uncertainty surrounding Trump's tariff strategy.

For those with a long-term view, however, this turbulence creates a compelling opportunity to invest in pioneering technology companies at discounted prices. Amid this ongoing volatility, I am taking a closer look at two space stocks that could offer significant growth potential over the next 10 to 20 years.

Image source: Getty Images.

Specifically, I plan on buying shares of Intuitive Machines (LUNR -1.79%), a leader in lunar exploration technology, and Rocket Lab USA (RKLB 0.05%), an innovative small satellite launch provider expanding into spacecraft manufacturing.

While headlines focus on short-term economic uncertainty, these two space pioneers are building next-generation businesses that could deliver exceptional returns for patient investors. Let's examine each of these emerging tech players to understand why they represent compelling buying opportunities for those with a long-term mindset.

A lunar trailblazer

Intuitive Machines presents a classic contrarian investment opportunity. The stock is down a staggering 62.7% year to date as of this writing, primarily due to setbacks with its lunar missions.

Most recently, the company's Athena spacecraft tipped over after landing on the lunar surface this month, losing power when its solar panels couldn't properly face the sun. This marked the second consecutive mission where one of the company's robotic landers tipped over upon lunar touchdown.

Despite these technical difficulties, the company has achieved remarkable milestones over the past year. Intuitive Machines has successfully landed spacecraft on the moon twice, returning the U.S. to the lunar surface for the first time since 1972.

From a financial perspective, Intuitive Machines has shown stellar revenue growth in recent quarters. For instance, Wall Street expects the company's 2024 revenue to come in 187% higher than the prior year, when it announces Q4 and full-year results. This substantial growth, primarily driven by NASA partnerships, highlights the company's established credibility with government space agencies.

With the stock trading at deeply discounted levels relative to recent highs and a market capitalization of just $627 million that likely undervalues its long-term potential, Intuitive Machines offers an attractive entry point for investors willing to endure near-term volatility for potential significant long-term returns in the emerging space economy.

A space pioneer positioned for growth

Rocket Lab USA represents an enticing investment opportunity despite prevailing market pessimism. With the stock down 32.7% year to date at the time of writing, the current setup presents an attractive entry point for investors with a long-term outlook.

Why? The rocket maker has secured its niche in the small satellite launch market through its reusable Electron rocket, which has completed 60 successful launches and deployed 210 satellites. It serves notable clients such as NASA, the U.S. Space Force, and various commercial operators.

Rocket Lab has been growing its revenue at a blistering pace, achieving $436 million in 2024 -- a robust 78% increase over 2023. Wall Street expects this hypergrowth to continue, with revenue forecast to rise by 33% in 2025 and 54% in 2026.

Looking forward, Rocket Lab is broadening its horizons with the upcoming Neutron rocket, which is scheduled to debut in late 2025. This next-generation vehicle will dramatically increase payload capacity fivefold over its current offerings, unlocking substantial new market opportunities.

With a market cap of just $7.76 billion, Rocket Lab seems deeply undervalued relative to its potential in the emerging space economy, which is expected to generate hundreds of billions in revenue annually. For investors willing to embrace near-term volatility, Rocket Lab offers a gateway to the expanding commercial space industry at an exceptionally attractive valuation.