New Delhi: Space-related stocks could offer significant long-term growth opportunities as the industry expands beyond rocket launches into satellites, orbital broadband, communications, defence applications and other space-enabled services, according to a research report by Goldman Sachs.
The report said investment opportunities are increasingly likely to emerge from the broader space ecosystem and its supply chain, rather than only from companies directly involved in launching rockets.
Companies involved in semiconductors, electronics, software, advanced materials, manufacturing and communications infrastructure could benefit as the commercialisation of space accelerates, the investment bank said.
According to Goldman Sachs, its custom basket of US space and satellite stocks gained around 13 per cent in 2026 through 14 July, outperforming the 9.8 per cent gain recorded by the S&P 500 over the same period.
The basket has risen more than 360 per cent over the past two years, although the rally has moderated since reaching a peak in late May.
The report said the investment 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 reporting higher sales linked to US government defence contracts, particularly in satellite imagery and connectivity.
Goldman Sachs said improving economics are supporting the sector's outlook, with the cost of rocket launches and satellites declining while commercial opportunities in global communications services continue to expand.
According to analyst Louis Miller, some companies included in the space and satellite basket could become profitable as early as next year.
The report also highlighted growing investor interest in orbital broadband services, including SpaceX's Starlink. It added that future applications such as orbiting data centres are attracting attention, although these remain longer-term opportunities.
Goldman Sachs said demand for space-related investments is coming from retail, private wealth and institutional investors, many of whom are seeking long-term structural growth opportunities beyond traditional sector allocations.
However, the report cautioned that the sector remains highly volatile. According to Goldman Sachs, its space and satellite basket is roughly twice as volatile as a comparable artificial intelligence (AI) basket and around five times as volatile as the S&P 500.
The investment bank said investor enthusiasm could at times outpace business fundamentals, even if the sector's long-term growth outlook remains positive.
