Are space stocks like SpaceX and Rocket Lab about to get a boost? The US confirms its first on-orbit space weapon, accelerating the "Iron Dome" program.

According to the Zhihong Finance APP, the US military has publicly confirmed for the first time that the US now possesses “space control weapons” in orbit. At the same time, the “Iron Dome” space-based interceptor project has advanced to the “flight-ready hardware” stage, with the integrated demonstration target set for 2028. This news has brought renewed attention to space stocks.

On Tuesday, space stocks showed mixed performance: Redwire (RDW.US) rose 2.48%, Rocket Lab (RKLB.US) was up nearly 2%, SpaceX (SPCX.US) fell over 3%, and AST SpaceMobile (ASTS.US) dropped close to 2%.

The US officially confirms in-orbit space weapons for the first time

According to reports, US Air Force Secretary Troy Meinke stated on Monday: “The United States now possesses in-orbit space control weapons capable of protecting US forces from hostile attacks,” saying, “this is important from a deterrence perspective.” Meinke did not specify the type of space-based weapon. The report notes that this is the first time the US has admitted to having “offensive capabilities” in space.

US Space Force Chief of Operations Douglas Heath further confirmed on Tuesday that Space Force personnel are now operating “in-orbit weapons capable of resisting space attacks.” Richard Palmer, Director of Capability and Resource Integration for US Space Command, also said on Tuesday that publicly disclosing these capabilities is intended to deter adversaries and demonstrate the US is prepared to respond. Palmer added, “Our joint forces and allies need space, our economy needs space. The United States is ready to defend that.”

Meinke revealed on Monday that the “Iron Dome” space-based interceptor project has advanced from the initial contract phase to the flight-ready hardware stage in less than a year.

According to reports, last May, US President Trump released the development plan for the “Iron Dome” space-based missile defense system. Trump said, “Iron Dome” will be integrated with existing US missile defense capabilities. Once completed, it will be able to intercept missiles launched from anywhere in the world, including from space. The entire system is expected to cost around $175 billion and is planned to be “fully operational” within three years.

Which space stocks stand to benefit?

In April this year, the US Space Force awarded 20 prototype contracts worth up to $3.2 billion to 12 companies, including SpaceX, Northrop Grumman (NOC.US), Lockheed Martin (LMT.US), and Anduril. These companies will develop space-based interceptors for the “Iron Dome” system capable of intercepting missiles.

SpaceX is most affected by Washington’s military deployment. In May, the company received a $2.29 billion contract to build a secure “space data network backbone” and another $4.16 billion contract to construct satellites and support systems for tracking aerial threats from orbit.

Rocket Lab holds a $266 million contract with the US Space Force, responsible for 12 suborbital missile defense launches, with an option for 6 more; in addition, the company secured two space data network orders totaling $12 million. The company also plans to acquire Iridium Communications (IRDM.US) for $8 billion, which will add a mature satellite network to its launch and spacecraft business.

Meanwhile, companies such as Planet Labs PBC (PL.US), AST SpaceMobile, Redwire, and Voyager Technologies (VOYG.US) are also drawing investor interest due to their presence in the military satellite, communications, and orbital infrastructure sectors.

On the Stocktwits platform, retail investors are “bearish” on AST SpaceMobile and SpaceX, while holding “neutral” views toward Rocket Lab and Redwire. Over the past year, AST SpaceMobile is up 43%, Redwire gained 19%, Rocket Lab rose 18%, and SpaceX fell 11%.