Velo3D Stock Is Exploding Higher Thursday: What's Going On?
Velo3D (NASDAQ:VELO) shares are surging Thursday, trading over $11 as investors rally behind the company's deepening integration with major defense and aerospace primes. The stock has gained over 80% in the last five days, fueled by upward momentum following key disclosures from CEO Arun Jeldi.
- Velo3D stock is approaching key resistance levels. Why are VELO shares at highs?
What To Know: Speaking this week at the iAccess Alpha Virtual Best Ideas Winter Investment Conference, Jeldi highlighted the company's entrenched position in the supply chain for SpaceX's Raptor engines and confirmed that defense technology firm Anduril is an active customer.
Jeldi said five major parts in current Raptor engines are qualified specifically for Velo3D's metal additive manufacturing platform and that the company is already printing components for SpaceX's next-generation Raptor 4 engine. He added that Velo3D and Anduril are working together on multiple programs and "combining our forces to get more contracts."
The latest surge builds on third-quarter results in which Velo3D reported revenue of about $13.6 million, narrowly topping analyst estimates, and reiterated guidance to reach positive EBITDA by the first half of 2026.
Under its "Rapid Production Solutions" strategy, management is targeting high-margin recurring revenue from defense and space customers, citing strong demand for its Rapid Production Services offering. Traders will be watching whether the breakout can hold through Thursday's session as technical indicators point to continued momentum.
Velo3D is showing strong bullish momentum, trading well above its key moving averages. The stock is currently positioned 122.1% above its 20-day SMA and 126.7% above its 50-day SMA, indicating a powerful upward trend.
MACD is above its signal line, indicating bullish momentum is still intact. This suggests that the current trend has strength, but traders should keep an eye on any potential shifts in momentum with the RSI at 71.61, which signals that the stock has entered overbought territory.
A golden cross occurred in October, with the 20-day SMA crossing above the 50-day SMA. This crossover often indicates the start of a strong bullish trend, which aligns with the current price action.
This surge coincides with a massive emerging theme regarding data centers in space, with Elon Musk recently confirming a potential SpaceX IPO to fund this initiative and Blue Origin unveiling similar orbital data center plans.
Google's Sundar Pichai is also driving this narrative through “Project Suncatcher,” signaling that the race to establish orbital computing infrastructure is becoming a critical sector trend.
Benzinga Edge Rankings: Benzinga Edge data reinforces this bullish outlook, highlighting positive price trends across short, medium, and long-term timeframes.
VELO Price Action: Velo3D shares were up 32.44% at $11.40 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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