Why Are Rocket Lab (RKLB) Shares Rising Premarket? SpaceX–xAI Merger

Rocket Lab Corporation (RKLB) shares rose approximately 4% in premarket trading on Tuesday, February 3, 2026, following Elon Musk’s announcement of a groundbreaking merger between SpaceX and xAI. The combined entity is valued at $1.25 trillion, representing a major initiative to expand artificial intelligence infrastructure beyond Earth.

The announcement sparked enthusiasm across the space sector, with multiple space stocks gaining in early trading as investors anticipated broader industry implications from Musk’s ambitious vision of space-based AI computing.

Space Sector Rallies After SpaceX and xAI Announce Merger

The merger announcement sent ripples through the space industry, with Rocket Lab (RKLB) and Planet Labs (PL) both rising around 3% in premarket trading. AST SpaceMobile (ASTS) gained 2.4%, Globalstar (GSAT) added 1.3%, while Intuitive Machines (LUNR) climbed 2.1% and Redwire (RDW) surged 4.9%.

Musk stated that the most cost-effective way to generate AI compute will be in space within two to three years, as Big Tech companies pursue artificial general intelligence, a theoretical milestone where machines could surpass human thinking.

The deal brings together two of the largest privately held companies in the world, with SpaceX planning a blockbuster IPO this year that could value it at more than $1.5 trillion. xAI was last valued at $230 billion in November 2025, according to the Wall Street Journal.

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RKLB Trades Higher Despite Ongoing Volatility

At the premarket timestamp of 7:27:19 AM EST on February 3, 2026, Rocket Lab shares were trading at $77.47, up $3.32 or 4.48% from the previous close of $74.15. The stock had closed down 7.39% on February 2 at $74.15, reflecting recent volatility in the space sector.

Despite short-term fluctuations, RKLB has demonstrated exceptional long-term performance with a 1-year return of 155.25%, a 3-year return of 1,315.08%, and a 5-year return of 606.19%, significantly outperforming the S&P 500. The company currently trades with a market capitalization of approximately $39.6 billion and a 52-week range of $14.71 to $99.58.

Analysts maintain an average price target of $83.96, with Needham rated as the top analyst with a “Buy” recommendation. However, the company faces challenges including negative earnings per share of -$0.38 and a levered free cash flow of -$111.28 million, reflecting its growth-stage profile and ongoing investments in its Neutron rocket program.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.