Rocket Lab Stock: Are Gigawatt Space Solar Arrays Enough To Offset Neutron Jitters?

RKLB pitches orbiting data centers powered by silicon solar tech, lifting retail sentiment, even as investors brace for another potential Neutron delay.

• Rocket Lab said that its silicon solar arrays deliver low cost per watt at an industrial scale, enabling gigawatt-class power generation in space.
• The company said that Rocket Lab has taken the additional step of developing a hybrid solar array solution that incorporates both high efficiency and silicon solar cells.
• Elon Musk said through the SpaceX and xAI deal, he was now looking to harness solar energy from space to power AI goals, and the demand for electricity from AI cannot be met by terrestrial solutions, mandating space-based AI.

Rocket Lab USA, Inc. on Thursday announced the launch of advanced silicon solar arrays designed to power gigawatt-scale space-based data centers, lifting retail trader sentiment even as the broader market signalled jitters over another potential delay to the company’s flagship Neutron rocket.

Shares were down more than 4% in overnight trading heading into Friday, on track to snap a two-session winning streak and likely wipe out weekly gains if the weakness persists.

Space-Based Data Centers: The New Norm

Rocket Lab said the space-based data centers would span kilometers in orbit. The company noted that terrestrial-based data centers are power-constrained, land-intensive, and consume significant volumes of water for cooling.

The company added that space-based data centers are freed from these environmentally intensive and resource-heavy constraints by leveraging the abundant space in orbit, the cold space environment, and the limitless energy of the sun.

Rocket Lab said that its silicon solar arrays deliver low cost per watt at an industrial scale, enabling gigawatt-class power generation in space using mass-manufacturable, lightweight, and modular systems that can scale economically as orbital compute demand rises.

A SpaceX Shown Pathway?

In February, SpaceX acquired its artificial intelligence startup xAI to accelerate “space-based artificial intelligence” ahead of the rocket company’s initial public offering, increasing retail and investor focus on the public debut. 

CEO Elon Musk then said he was now looking to harness solar energy from space to power AI goals, and the demand for electricity from AI cannot be met by terrestrial solutions, mandating space-based AI.

Ark Investment Chief Futurist Brett Winton noted that the SpaceX and xAI deal was a massive bet on the computing Musk’s rocket company was looking at, as it has the scale to boost space-based powering for AI data centers.

How Is Rocket Lab Planning To Scale Space Data Centers?

Rocket Lab said it already has the world’s largest installed production capacity for gallium arsenide and germanium-based solar arrays, and has now taken the future-proofing step of introducing silicon-based solar arrays to its production capabilities.

The company said that Rocket Lab has taken the additional step of developing a hybrid solar array solution that incorporates both high-efficiency and silicon solar cells, an approach that leverages the benefits of both technologies and enables adaptable, scalable solutions for any mission. 

“Rocket Lab's silicon solar arrays are designed to meet the unique challenges of operating in space while delivering the performance needed to support the growing demand for data processing and storage beyond Earth’s atmosphere,” CEO Peter Beck said.

What Is Retail Thinking About RKLB?

Retail sentiment on Rocket Lab jumped to ‘bullish’ from ‘bearish’ a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

A bullish user on Stocktwits shrugged off the Neutron delay and said that they were looking for a record bounce of the stock on Friday.

In the last 24 hours, the retail message volume on the stock jumped 212% on Stocktwits, and over the past year, the ticker has seen a more than 55% spike in followers on the platform.

Shares of Rocket Lab have gained more than 254% in the last 12 months.

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