Velo3D, Inc. (VELO) is having a pretty good Wednesday. The 3D printing specialist saw its shares climb 4% in premarket trading to $14.56, catching a ride on broader market enthusiasm that has the S&P 500 up 0.37% and the tech sector leading the charge with a 1.68% gain.

Defense Contracts Build Momentum

There's no fresh news driving the move today, but Velo3D has been building a compelling story over the past few months. The company landed a hefty $32.6 million Department of War contract on December 22 under Project FORGE, the kind of defense win that tends to validate a company's technology and open doors to more government work.

Then on January 13, Velo3D inked a Cooperative Research and Development Agreement with the U.S. Army's DEVCOM Ground Vehicle Systems Center. Translation: the Army wants to work directly with Velo3D on advanced manufacturing research, which is exactly the sort of collaboration that can lead to bigger things down the road.

The company has also been busy in the commercial space sector. On January 5, Velo3D announced a collaboration with Momentus Inc. (MNTS) on a 3D-printed fuel tank destined for space testing. When your technology is being tested in space, you're clearly doing something interesting.

Technical Picture Shows Long-Term Strength

Today's move seems mostly about riding the tech sector wave. The Nasdaq is up 0.92%, and Velo3D is getting pulled along for the ride. But zoom out a bit and the stock's performance looks genuinely impressive. We're talking about a 316.67% gain over the past year, positioning the stock much closer to its 52-week highs than its lows.

The technical setup reveals an interesting split personality. The stock is trading 16% below its 20-day simple moving average, suggesting some recent pullback or consolidation. But step back further and the picture brightens: Velo3D sits 25.1% above its 50-day moving average and a substantial 81.2% above its 100-day average. That's the signature of a strong long-term uptrend, even if there's some short-term choppiness.

The momentum indicators tell a mixed story. The RSI is parked at 46.57, right in neutral territory where it could break either direction. Meanwhile, the MACD is sitting below its signal line, which typically suggests some bearish pressure. Put it all together and you've got a stock where traders are probably watching carefully for the next clear signal.

What Analysts Are Thinking

Wall Street is reasonably bullish on Velo3D. The consensus rating is Buy with an average price target of $18, which implies some decent upside from current levels. Lake Street notably raised its target to $18 on December 29, maintaining a Buy rating.

The next earnings report drops on February 26, 2026, and expectations are set pretty low: analysts are forecasting a loss of 50 cents per share on revenue of $8.50 million. For a company like Velo3D, though, the story is less about near-term profitability and more about winning contracts and proving out the technology. Those defense deals and space collaborations matter more than a quarter or two of red ink.

With the stock currently trading at $14.55, investors seem to be betting that the recent string of defense wins and partnerships will translate into sustained revenue growth. The question is whether the company can convert all this momentum into the kind of recurring business that justifies the recent run-up.