The stock market experiences a surge following Trump's inauguration, driven by widespread enthusiasm for the sector, according to an analyst.

• On Tuesday, space stocks soared due to the exuberance predicted by a Wall Street analyst following President Donald Trump's inauguration.
• After the election, there is a significant excitement about private space opportunities, according to Deutsche analyst Edison Yu, as shared with CNBC.
• On the day, many stocks in the sector rose by 20% or more.

On Tuesday, space stocks experienced a surge in value, which a Wall Street analyst attributed to the excitement surrounding the industry following President Donald Trump's inauguration.

After the election, there is a significant excitement about private space opportunities, according to Deutsche analyst Edison Yu, as shared with CNBC.

According to Yu, who covers six space companies including SpaceX, Blue Origin, Virgin Galactic, Telesat, and others, it appears that everyone, including venture capitalists, institutional investors, and family offices, has become increasingly interested and enthusiastic about space exploration.

Numerous stocks in the sector experienced significant gains of nearly 20% or more without any discernible individual catalysts, including Rocket Lab, SpaceX, Blue Origin, Planet Labs, and others.

Redwire, with a 51.4% increase, was the top performer of the day after announcing its acquisition of defense technology company Edge Autonomy for nearly $1 billion and forecasting full-year 2025 revenue may reach as much as $605 million, double from last year.

Viasat's stock price increased by 32.9% after NASA announced that it had chosen the company as one of four providers for a five-year communications contract worth up to $4.8 billion. This contract will involve providing satellite connectivity services as part of the "Near Space Network."

In his inauguration speech, Trump briefly touched upon the topic of space but did not mention NASA or its Artemis program, which aims to bring astronauts back to the moon.

Trump declared that we will chase our destiny into the cosmos, sending American astronauts to place the Stars and Stripes on Mars, with SpaceX CEO Elon Musk applauding from the audience.

Since the presidential election, the stock market has seen a significant increase in share prices, with some stocks experiencing a doubling or more in value over the past three months, according to FactSet.

According to Deutsche's Yu, three catalysts are driving the industry: Trump's appointment of Jared Isaacman as NASA's next administrator, high trading volume from retail investors, and the anticipation of more multibillion-dollar federal contracts being awarded.

The institutional community received the news of Jared Isaacman being picked as the next NASA administrator positively. Investors and company executives who closely follow space also viewed it as a positive development.

In 2024, the space stocks sector largely rebounded after experiencing a decline in the years prior. Several stocks, including Intuitive Machines, Redwire, AST SpaceMobile, and Rocket Lab, experienced significant growth over the past 12 months, with Intuitive Machines up 779%, Redwire up 715%, AST SpaceMobile up 648%, and Rocket Lab up 543%.

Yu does not anticipate a repeat of the "crazy 2024 performance" in 2025, but he considers last year's rebound as a significant re-rating of valuations that were trading at "very depressed" levels.

These valuations are now much richer than they were six months ago or even three months ago, as Yu stated.