<p><strong>Rocket One Inc</strong> (NASDAQ:RKTO) stock is trading lower on Friday. The decline comes amid a broader retreat across the aerospace and defense sectors, which are pulling back from a recent rally tied to the U.S.-Iran conflict and anticipation surrounding an upcoming SpaceX initial public offering.</p>



<h2>Sector Pullback Erases Recent Gains</h2>



<p>The broader sector momentum shifted on Friday following geopolitical updates. President <strong>Donald Trump</strong> stated that &#34;the Hormuz Strait must be immediately open, no tolls, for unrestricted shipping traffic, in both directions,&#34; adding that the U.S. naval blockade &#34;will now be lifted.&#34; The de-escalation dented the defense-fueled rally, affecting infrastructure players such as Rocket One.</p>



<h2>Blue Origin Explosion Weighs On Sentiment</h2>



<p>An industry setback is also weighing on investor sentiment. <strong>Jeff Bezos</strong>-backed <strong>Blue Origin</strong> suffered an anomaly during Thursday's static fire test at the Kennedy Space Center, where its flagship New Glenn rocket exploded.</p>



<p>Spaceflight Now shared a video of the incident on X, showing the rocket engulfed in flames at Launch Complex 36. Bezos stated that all personnel were &#34;accounted for and safe,&#34; but acknowledged they did not know the &#34;root cause&#34; yet, adding, &#34;Very rough day, but we’ll rebuild whatever needs rebuilding.&#34; SpaceX CEO <strong>Elon Musk </strong>responded on X, saying, &#34;Sorry to see this, I hope you recover quickly.&#34;</p>



<h2>SpaceX IPO Headwinds</h2>



<p>While SpaceX recently conducted a successful Starship V3 launch test, reports indicate the company could trim its targeted IPO valuation to $1.8 trillion, down from a previously reported $2 trillion. Musk previously confirmed targeting a $1.75 trillion valuation for the June IPO.</p>



<h2>Rocket One’s Core Focus</h2>



<p>The market pressure overshadows Rocket One’s Thursday announcement regarding its acceptance into the AMD AI Developer Program by <strong>Advanced Micro Devices, Inc.</strong> (NASDAQ:AMD). CEO <strong>Robb Knie </strong>stated that the program allows them to “evaluate and refine advanced architectures earlier and more efficiently.” Rocket One remains focused on developing radiation-tolerant nanomagnetic AI chip technology for defense and deep-space platforms.</p>



<p><strong>RKTO Stock Price Activity:</strong> Rocket One shares were down 17.94% at $1.40 at the time of publication on Friday, according to Benzinga Pro data.</p>



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<p><em>Image: Shutterstock</em></p>

RKTO

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<p>Rocket One (RKTO) stock fell 17.94% to $1.40 on Friday, driven by a broader aerospace and defense sector pullback following geopolitical de-escalation between the U.S. and Iran. Sentiment was further dampened by Blue Origin's New Glenn rocket explosion during a static fire test. Despite recent gains from an AMD AI Developer Program acceptance, market pressure overshadowed this development as investors reacted to sector-wide retreats and industry setbacks.</p>

- Rocket One Inc (NASDAQ:RKTO) shares declined by 17.94% to $1.40 amid a broader retreat in the aerospace and defense sectors, influenced by geopolitical updates and a setback for Blue Origin.  
- President Trump announced the lifting of the U.S. naval blockade in the Hormuz Strait, affecting investor sentiment in the defense market.  
- Despite these pressures, Rocket One was accepted into the AMD AI Developer Program, focusing on radiation-tolerant nanomagnetic AI chip technology for defense and deep-space applications.

Why Is Rocket One Stock Falling On Friday?