Rocket Lab CEO Warns ‘Piping Hot’ AI And Space Trades Could 'Go Pop' As SpaceX-Fueled Mania Sends Valuations Soaring

CEO Peter Beck blamed RKLB’s stock volatility on macro conditions, saying the business has improved across “every single metric.”

• Beck said investors are buying into the sectors’ “promise and hope,” but called some valuations “very high.”
• Space stocks plunged on SpaceX’s June 12 debut, with RKLB down 10.8%, PL 8.8%, LUNR 13.1% and ASTS about 16%.
• Beck defended Rocket Lab’s premium, calling rockets the “keys to space” and saying only Rocket Lab and SpaceX regularly fly commercial orbital rockets.

Rocket Lab (RKLB) CEO Peter Beck warned that the AI and space boom could prove unsustainable, calling the market “piping hot” and some valuations “very high.”

RKLB stock fell 2% on Thursday, extending its losing streak to a second session and remaining on track for a fifth consecutive weekly decline.

Beck Warns Of AI And Space Bubble

Speaking to Newstalk ZB, Beck said Rocket Lab’s fundamentals have improved despite volatility in its shares: “Rocket Lab as a business is fundamentally better in every single metric,” Beck said. “But yet, the stock price went down.”

“That’s just a complete macro, you know, environment thing that you can’t really control,” he added. “I think the environment is pretty piping hot right now.” 

The conversation then turned to Elon Musk’s ability to attract investors to ambitious visions, first at Tesla and now at SpaceX. “See, because the thing that also fascinated me about Elon, back more when he was in Tesla as opposed to SpaceX, was there was, investments-wise, there was something about him, around him, that had people lose their minds. And I couldn’t understand it, but people bought into it tangibly,” the interviewer said. 

“Totally,” Beck responded.

When asked whether investors understand what they are buying across AI, chips and space, and whether it could all “go pop,” Beck acknowledged the risk. “I mean, yes, I think it could, but also I think you’re buying into the promise and the hope of what it can potentially provide,” he said. “Look, I’m not gonna defend, you know, some of the prices of some of these things. I think they’re very high value.”

Beck had expressed similar concerns in June, saying some space-sector valuations were “completely untethered to reality.”

SpaceX Mania Fueled Sector Rally 

The warning follows a major revaluation of space companies surrounding SpaceX’s blockbuster market debut and Musk’s prediction that orbital AI computing could eventually become cheaper than terrestrial data centers.

SpaceX listed at a valuation of approximately $1.75 trillion despite reporting $18.67 billion in 2025 revenue and a $4.94 billion net loss, pricing the company at about 94 times annual sales as investors also priced in orbital data centers, Mars missions and other long-term ambitions. 

The enthusiasm lifted publicly traded space companies. Ahead of the IPO, Rocket Lab hit a market cap of about $66 billion against $600 million in 2025 revenue. The trade reversed after SpaceX’s debut. On June 12, the day SpaceX debuted on the Nasdaq, Rocket Lab fell 10.8%, Planet Labs (PL) declined 8.8%, Intuitive Machines (LUNR) sank 13.1%, and AST SpaceMobile (ASTS) lost about 16%. 

Beck Defends Rocket Lab’s Premium 

Despite questioning elevated prices, Beck said Rocket Lab merits a premium because only two commercial companies regularly fly orbital rockets. “It’s SpaceX and Rocket Lab, that’s it,” he said. “At the end of the day, there’s two companies in the world doing it. And that creates a certain, or attracts a certain value.”

Beck said 142 small-rocket companies existed when Rocket Lab began developing Electron, but the field eventually “whittled down to one, which is us.” “It’s just incredibly difficult to execute,” he said. “Rocket science doesn’t change.”

Beck called rockets the “keys to space” and predicted that the industry’s eventual winners would combine launch capabilities, satellite manufacturing and services. Citing Musk’s company as the model, he asked, “What is SpaceX? Is it a telecommunications company?” before adding, “I’d argue it’s actually an AI company.” 

How Do Retail Traders Feel About RKLB?

On Stocktwits, retail sentiment for RKLB has been ‘bearish’ over the past week amid a 51% decline in 24-hour message volumes.

One user said, “$RKLB started scaling back in here.  Will pick up another 200 shares each dollar it drops…or go all in if the trend flips”

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Another user said, “$RKLB overvalued + dilution + rate hike, this stock is doomed”

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RKLB stock has risen 34% over the past year. 

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