Artificial intelligence has dominated the stock market in recent months, but investor interest in AI appears to be waning as technology shares have declined this quarter. Market watchers are now turning their attention to space-related industries as a potential new frontier for investment.

The burgeoning space economy has attracted significant capital from both public and private sectors eager to participate early in what some describe as a new space race. Notably, in June, Space Exploration Technologies Corp., widely known as SpaceX, completed what was then the largest initial public offering ever, raising $8.7 billion and valuing the company at nearly $1.8 trillion.

Canada recently announced a $20 million investment over the next decade with NordSpace Corp. to utilize its Spaceport facility in Newfoundland and Labrador. The government also secured a 10-year agreement with Maritime Launch Services Inc., granting access to a launch site in Nova Scotia. These moves reflect growing national efforts to support domestic space infrastructure and participation in the industry.

Despite the excitement, analysts urge caution about the sector’s current commercial viability. Space remains a challenging and capital-intensive environment. SpaceX reported capital expenditures of $48 million for the first nine months of fiscal 2026—a modest sum relative to the trillions projected to be necessary for realizing ambitions such as lunar mining or establishing human colonies on Mars.

Profitability beyond satellite services also remains uncertain. SpaceX’s Starlink satellite internet program is operational and expanding, but other potential sources of revenue, such as mining asteroids for rare metals, face economic challenges. For example, asteroid 16 Psyche, located in the main asteroid belt, contains vast quantities of iron, nickel, and gold theoretically worth trillions of dollars. However, experts caution that flooding terrestrial markets with these materials would drastically lower prices. More likely, extracted materials will be used in space itself for construction and manufacturing, given the prohibitive costs of transporting resources out of Earth’s gravity well.

SpaceX’s recent quarterly financial results offer insight into the current scale of operations. The company reported revenue of $146 billion, a 161% increase compared to the previous year, but the net profit was only $4.4 million. Adjusted EBITDA rose sharply to $8.8 billion. The company projects revenues between $33 billion and $37 billion for the first quarter of 2027.

For investors interested in gaining exposure to the space sector, exchange-traded funds (ETFs) provide a diversified approach. One such fund, the Tema Space Innovation ETF, launched in March 2026 and managing nearly $1 billion in assets, allocates its largest share—about 28%—to SpaceX. Other significant holdings include Rocket Lab Corp. and AST Spacemobile Inc. While predominantly invested in U.S. stocks, this ETF also holds Canadian and Taiwanese companies. The fund, which has not yet paid distributions, recorded a 21.1% loss in the quarter ending September 30, reflecting the sector’s volatility.

Given the high capital requirements and uncertain near-term profitability, specialists consider space investments suitable primarily for aggressive investors willing to take a long-term perspective on the unfolding development of the space economy.