To the stars: Investing in space exploration

Space exploration is finally becoming a real-world opportunity for investors. From satellites beaming the internet to remote corners of the Earth to landers touching down on the moon, the space industry is taking off in surprisingly new ways. 

A transformative industry

The global space economy is expected to hit $1.79 trillion by 2035, up from $630 billion in 2023, according to McKinsey Insights.¹

Space-enabled technology already powers everyday tools like weather apps and smart devices. But its impact is expanding—industries from retail and food to logistics and disaster response are beginning to benefit from space-driven innovations.² The old space industry was government-led and centralized. Today’s space economy is entrepreneurial, decentralized, and open to a wider range of industries.³

For example, satellites are transforming how we communicate, monitor climate change, and navigate our world. Companies are developing reusable rockets, space tourism, and even plans for lunar bases.

Some investors are drawn to space exploration for its long-term potential. It offers a chance to get in early on a transformative industry, much like the internet in the 1990s or electric vehicles a decade ago. Plus, space touches so many sectors—telecom, defense, agriculture, and even entertainment—that it offers diverse ways to participate.

Investing in space exploration companies

Because it’s a relatively new and speculative area of the market, it’s important for investors to understand the risks. Building rockets and satellites is expensive, and many companies are still losing money as they grow. That means stock prices can be very volatile, and not every company will succeed. Plus, the industry relies heavily on government contracts, which can be unpredictable.

Although Invesco QQQ ETF, which tracks the Nasdaq-100® Index, doesn’t currently include any pure-play space exploration companies, several holdings contribute to technology that supports the space economy. Honeywell International plays a role through its aerospace division, while Nvidia provides high-performance computing power used in satellite data processing and AI-driven space applications. Micron Technology supplies memory and storage systems essential for spacecraft and satellite operations in extreme environments.

There are a handful of Nasdaq-listed companies that are emerging as leaders in space. This probably isn’t surprising given Nasdaq’s reputation for listing the stocks of some of the world’s most innovative and technologically advanced companies. 

Looking to the future

Space exploration is more than a sci-fi dream—it’s a fast-growing industry reshaping how we live, work, and connect. From improving internet access to laying the groundwork for future lunar missions, the possibilities are vast.

While still in its early stages, the space economy is evolving quickly—and it’s a theme long-term investors may want to keep on their radar as innovation continues to take flight.