Backlog Strength and Space Demand Lift Rocket Lab (RKLB)

American Century Investments, an investment management company, released its first-quarter 2026 investor letter for the "American Century Investments Focused Dynamic Growth Fund". The letter can be downloaded here . U.S. stocks advanced sharply with double-digit quarterly gains largely due to robust earnings, resilient economic data, and momentum in AI-related stocks. However, there was a slight pullback in June as momentum waned and investors anticipated potential interest rate hikes by the Federal Reserve. Growth and AI stocks outperformed value stocks, while large-cap companies generally surpassed small- and mid-cap stocks. Underperformance was noted in healthcare and communication services, while industrials, particularly in aerospace and defense, contributed positively to performance. The fund's investor class returned 16.38%, slightly below the Russell 1000 Growth Index's 16.74%. The investment approach focuses on bottom-up financial analysis to identify large-cap companies with long-term earnings growth potential, while aiming to mitigate non-financial risks. Please review the Fund's top five holdings to gain insights into its key selections for 2026.

In its second-quarter 2026 investor letter, American Century Investments Focused Dynamic Growth Fund highlighted Rocket Lab Corporation (NASDAQ: RKLB ) as a notable contributor to performance. Rocket Lab Corporation (NASDAQ:RKLB) is an end-to-end space company that provides launch services and space systems solutions. On September 09, 2026, Rocket Lab Corporation (NASDAQ:RKLB) closed at $63.07 per share. Over the past month, Rocket Lab Corporation (NASDAQ:RKLB) declined 21.26%, but its shares are up 30.23% over the past year. Rocket Lab Corporation (NASDAQ:RKLB) has a market capitalization of $40.33 billion, and its stock has traded within a 52-week range of $37.57 to $151.00.

American Century Investments Focused Dynamic Growth Fund stated the following regarding Rocket Lab Corporation (NASDAQ:RKLB) in its Q2 2026 investor letter:

"Rocket Lab Corporation (NASDAQ:RKLB). The commercial space company rallied as record revenue and strong guidance were supported by a large backlog and demand for its launch and space systems businesses. After Space Exploration Technologies' June initial public offering drove some volatility, Rocket Lab announced plans to acquire satellite operator Iridium Communications."

Rocket Lab Corporation (NASDAQ:RKLB) is not on our list of the 40 Most Popular Stocks Among Hedge Funds . According to our database, 52 hedge fund portfolios held Rocket Lab Corporation (NASDAQ:RKLB) at the end of the second quarter, compared to 43 in the previous quarter. While we acknowledge the potential of Rocket Lab Corporation (NASDAQ:RKLB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .