2025 Space and Defense Stock Rally: Satellite Firms Outperform AI Giants

Silicon Valley's AI boom wasn't the only gold mine in 2025. While many eyes were glued to semiconductor giants, investors looking toward the stars found even bigger returns. Driven by a surge in U.S. defense spending and renewed lunar ambitions, satellite stocks have skyrocketed, with some more than tripling in value this year.

EchoStar and Planet Labs Lead the 2025 Space and Defense Stock Rally

Leading the charge is Planet Labs (PL), which has seen its stock surge nearly 400% this year. The San Francisco-based firm is now valued at $6.2 billion, fueled by a massive 3x jump in its order backlog. Beyond securing contracts with NATO and the European Space Agency, its 'Suncatcher' project with Google to deploy AI chips in space has set the market on fire.

Not far behind is EchoStar (SATS). Its shares have soared 377% after strategic spectrum deals with AT&T and SpaceX injected much-needed liquidity. The $17 billion deal with Elon Musk's firm aims to eliminate mobile dead zones, a move that boosted founder Charlie Ergen's net worth by $12.2 billion this year alone.

The 'Orbital Economy' and the SpaceX IPO Catalyst

The sector's momentum is largely tied to geopolitical shifts. President Donald Trump's $175 billion 'Golden Dome' project and a commitment to return to the moon have prioritized space as the next military frontier. NASA Administrator Jared Isaacman believes these efforts are essential for unlocking a robust 'orbital economy.'

Anticipation for a SpaceX IPO in 2026 is acting as a massive tailwind for public peers. With SpaceX potentially seeking a $500 billion valuation, names like ViaSat (VSAT), up 315%, and drone tech leader Ondas, up 251%, are benefiting from the 'halo effect' of a sector that's finally going mainstream.