The research report noted that opportunities may increasingly emerge from the broader space ecosystem and its supply chain, rather than only from companies directly involved in launching rockets. Semiconductor, electronics, software, advanced materials, manufacturing and communications infrastructure companies could benefit as the commercialisation of space accelerates.
Goldman Sachs said its custom basket of US space and satellite stocks had gained around 13 per cent in 2026 through July 14, outperforming the 9.8 per cent rise in the S&P 500 over the same period. The basket has risen more than 360 per cent over the past two years, although its rally has cooled from its late-May peak.
The report noted that the space theme has evolved significantly, with investors increasingly focusing on rocket launches, satellites, global communications and potential future markets enabled by space technologies. Some companies in the basket are also seeing rising sales linked to US government defence contracts, particularly in satellite imagery and connectivity.
A key factor supporting the sector's outlook is the improving economics of space activity. Goldman Sachs said the cost of rocket launches and satellites has declined, while opportunities in global communications services are developing. Some companies in the space and satellite basket could become profitable as early as next year, according to analyst Louis Miller.
The report also highlighted growing investor interest in orbital broadband services, including companies such as SpaceX's Starlink. Potential future applications such as orbiting data centres are also attracting attention, although these remain longer-term opportunities.
However, the sector remains highly volatile. The Goldman Sachs space basket is roughly twice as volatile as a comparable AI basket and about five times as volatile as the S&P 500. The report cautioned that investor enthusiasm could periodically run ahead of fundamentals even if the sector's long-term structural direction remains positive.
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