Velo3D (VELO) is having quite the week. Shares blasted past $11 Thursday, capping an 80% rally over the past five days as investors digest some significant news about the company's role in the aerospace and defense supply chain.
What's Driving the Rally?
Speaking at the iAccess Alpha Virtual Best Ideas Winter Investment Conference this week, CEO Arun Jeldi pulled back the curtain on exactly how embedded Velo3D has become with some of the biggest names in space and defense. The headline: five major parts in SpaceX's current Raptor engines are specifically qualified for Velo3D's metal additive manufacturing platform. Even better, the company is already printing components for SpaceX's next-generation Raptor 4 engine.
That's not all. Jeldi confirmed that defense technology firm Anduril is an active customer, and the two companies are "combining our forces to get more contracts" across multiple programs. For a company that was struggling to gain traction just months ago, these revelations represent a dramatic shift in the narrative.
The Bigger Picture
This momentum builds on third-quarter results where Velo3D reported revenue of about $13.6 million, narrowly beating analyst estimates. Management reiterated guidance to reach positive EBITDA by the first half of 2026, a critical milestone for a company that's been burning cash.
The strategy here is clear: focus on high-margin recurring revenue from defense and space customers through what management calls "Rapid Production Solutions." Strong demand for the company's Rapid Production Services offering suggests this approach might actually be working.
Technical Picture Gets Interesting
From a technical standpoint, Velo3D is showing serious bullish momentum. The stock is trading 122.1% above its 20-day simple moving average and 126.7% above its 50-day SMA. That's a powerful upward trend by any measure.
The MACD indicator remains above its signal line, confirming that bullish momentum is intact. A golden cross occurred back in October when the 20-day SMA crossed above the 50-day SMA, typically signaling the start of a strong bullish trend. The only yellow flag: RSI stands at 71.61, putting the stock in overbought territory. Traders will be watching whether this breakout can hold or if a pullback is coming.
The Space Data Center Narrative
This surge is happening against a backdrop of mounting excitement about orbital data centers. Elon Musk recently confirmed a potential SpaceX IPO to fund space-based data center initiatives, while Blue Origin has unveiled similar plans. Google's Sundar Pichai is pushing the concept through "Project Suncatcher." The race to establish orbital computing infrastructure is becoming a defining sector trend, and companies like Velo3D that enable these ambitious projects are getting swept up in the enthusiasm.
Price Action: Velo3D shares were up 32.44% at $11.40 Thursday, trading at a new 52-week high.
