Velo3D shares climbed sharply on Friday, rising 13.4% to close at $23.06 in regular trading on the Nasdaq. The stock continued its upward momentum in after-hours activity, gaining an additional 3.2% to reach $23.80. This rally brought the metal 3D-printing company within striking distance of its 52-week high, just ahead of the Memorial Day holiday weekend when U.S. markets will be closed on Monday, May 25. The next regular trading session is scheduled for Tuesday.
The surge was fueled by renewed trader interest in stocks tied to SpaceX's anticipated initial public offering (IPO). Reports from Benzinga highlighted Velo3D's gains as linked to both the SpaceX IPO filing and the company's exposure to aerospace manufacturing. Reuters reported that SpaceX is targeting a valuation of approximately $1.75 trillion and plans to use a staggered resale structure to avoid a single large lock-up period for insiders after listing. A lock-up period restricts insiders and early investors from selling their shares immediately after an IPO.
Velo3D did not announce any new orders from SpaceX on Friday. However, the company's website describes itself as a U.S.-based manufacturer of laser-powder-bed metal 3D printers used in aerospace, defense, and energy sectors. It specifically mentions that its technology is utilized in SpaceX's reusable rockets. Additive manufacturing, or 3D printing, builds parts layer by layer rather than machining them from solid metal blocks.
For the week ending May 22, Velo3D shares posted a gain of approximately 24% from its May 15 close of $18.59. The stock experienced a dip on Tuesday but recovered over the next three days. Trading volume on Friday reached about 4.75 million shares, well above its recent average, indicating heightened investor activity.
Beyond the SpaceX narrative, Velo3D reported strong first-quarter results on May 12. Revenue came in at $13.8 million, a 48% increase year-over-year, with a gross margin of 17.2%. The net loss was $7.0 million. The company maintained its full-year 2026 revenue guidance of $60 million to $70 million and reiterated its expectation of turning EBITDA positive in the second half of the year. CEO Arun Jeldi described the quarter as a "strong start to 2026" and a "key inflection point." CFO Jim Suva noted that debt and conversions had reduced outstanding debt by about 70% to $9 million.
Following the earnings report, Lake Street analyst Jaeson Schmidt raised his price target on Velo3D to $20 from $18, maintaining a Buy rating. He stated that the "strong print should give investors confidence" in the company's expected ramp-up this year. Notably, Friday's closing price of $23.06 already exceeded this revised target.
Market context also played a role. U.S. stocks finished the week with gains, with the S&P 500 up 0.4% on Friday, the Dow rising 0.6%, and the Nasdaq Composite gaining 0.2%. Small-cap stocks outperformed, with the Russell 2000 climbing 2.7% for the week, providing a tailwind for speculative growth stocks. U.S. indexes have now recorded eight consecutive weekly gains.
However, risks remain for Velo3D. In its latest quarterly filing, the company flagged "substantial doubt" about its ability to continue as a going concern, warning that it may not have sufficient cash to operate for another year without additional funding. Cash stood at $16.6 million as of March 31, with an accumulated deficit of $505.1 million. A prospectus dated May 18 cleared the resale of 3 million shares by a selling stockholder, with Velo3D not receiving any proceeds from those sales.
The upcoming Tuesday open will be critical. If the stock holds near its 52-week high, the SpaceX-driven rally may continue. However, if it slips back below Friday's close, the move could be viewed as a holiday-week spike rather than a fundamental re-rating.
