Aerospace just outperformed semiconductors - and almost nobody saw it coming.

The Aerospace Index surged 45% over the past year, topping the Semiconductors Index's 41% gain, with Rocket Lab Corp (RKLB  ) (+250%), Planet Labs PBC (PL  ) (+374%), and Archer Aviation Inc (ACHR  ) (+92%) leading the charge. While Nvidia Corp (NVDA  ) added just 30%, investors are rotating from chip fabs to launch pads, betting that the next AI frontier isn't in data centers - it's in orbit.

Rocket Lab, Planet Labs, Archer: The New Growth Trio

  • Rocket Lab's steady launch cadence and defense work have transformed it from "mini SpaceX" into one of 2025's most-watched stocks.
  • Planet Labs, whose satellite imaging now powers everything from climate analytics to national security, has quietly tripled this year.
  • Meanwhile, Archer Aviation is capitalizing on eVTOL hype and FAA approvals to bring electric air taxis closer to reality.
Together, they're turning aerospace into the market's next tech trade - and outperforming AI chipmakers that dominated just a year ago.

Nvidia Looks To The Sky, Too

Even Nvidia seems to sense where momentum is shifting. Its new partnership with Palantir Technologies Inc (PLTR  ) to co-develop AI infrastructure software underscores a subtle pivot - from selling the picks and shovels of AI to building the ecosystem that runs on top. After a historic run in 2023, Nvidia's growth curve is flattening, while aerospace firms are in liftoff mode - literally.

For investors chasing the next big innovation theme, the signal is hard to miss. The space economy is scaling faster than the chip cycle, and aerospace stocks are behaving like early-stage AI winners once did.

The lesson? In 2025's market, the real upside may belong not to those who build the chips - but to those building the skies.