VELO Stock Heads For Best Week This Year — Yes, It's A SpaceX Proxy Trade

Velo3D gained attention as investors sought exposure to the SpaceX IPO through its supply chain.

• SpaceX uses Velo3D’s Sapphire printers for advanced rocket parts and signed an $8 million IP services agreement in 2024.
• Investors unable to access SpaceX’s highly anticipated IPO are turning to related stocks, boosting interest in Velo3D.
• Velo3D has staged a strong turnaround in 2026, driven by 48% revenue growth, positive gross margins and a 70% reduction in debt.

Velo3D, Inc. (VELO) stock extended its rally overnight on Thursday, following four straight sessions in the green, as investors rotated into advanced manufacturing names tied to the expanding space economy ahead of the SpaceX IPO.

The stock is heading toward its best week of the year after a 34% surge on Thursday.

SpaceX IPO Ignites Proxy Trading Frenzy In VELO

Market attention has shifted aggressively toward the public debut of Elon Musk's SpaceX, set to trade under the ticker SPCX at a valuation near $1.77 trillion. With IPO shares tightly allocated and difficult for most investors to access, the listing has triggered a wave of indirect positioning — traders seeking liquid alternatives linked to the same value chain.

That spillover has landed on Velo3D as traders seek exposure to the broader launch and manufacturing cycle.

VELO’s Supply Chain Role Strengthens Investment Narrative

Velo3D’s appeal stems from its specialized metal 3D-printing systems used to produce complex aerospace components, including parts for next-generation rocket engines. 

Its manufacturing capabilities are viewed as critical to enabling high-performance propulsion systems that require precision geometries and advanced materials processing.

SpaceX uses Velo3D’s Sapphire printers to help make highly complex metal parts for rockets, including components like the Raptor 3 engine. In 2024, SpaceX also signed an $8 million deal with Velo3D for intellectual property and services, allowing it to use and adapt the company’s 3D printing technology for its own space programs. 

The Debt Turnaround Fueling VELO’s 2026 Revival 

Velo3D has overcome the financial difficulties that previously clouded its outlook. The company's recovery gained momentum following fiscal first-quarter results that highlighted 48% revenue growth, a positive gross margin of 17.2% and substantial debt reduction.

Through debt-to-equity transactions and a capital raise completed earlier this year, Velo3D cut its outstanding debt by approximately 70%, leaving only about $9 million in remaining obligations. The move eased concerns about the company's long-term financial stability.

On Thursday, VELO appointed former Fremont Mayor Lily Mei as an independent member of its Board of Directors. In addition to expanding its space operations, the company has expanded its production services for defense and energy infrastructure to diversify revenue streams. 

What VELO Retail Traders Are Saying

On Stocktwits, retail sentiment around the stock remained ‘extremely bullish’ with a 302% jump in message volume in 24 hours. 

A user said, “$VELO let her rip!!!! I knew this was gonna explode when I bought 10,000 shares @$5 last November when [CEO] Arun [Jeldi] took this company around and we heard whispers of SpaceX and Anduril being customers! Have not sold anything! But this is what happens when you do your DD and believe in company mgmt! LONG!!!”

Another user said, “Look at all the shawties coming out of the woodwork. They're either shorting it, or they sold to lock in profits and now they want it to dump so they can buy again.”

VELO stock has rocketed over 122% year-to-date. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<