Velo3D (VELO) Surges 25% on Intraday Rally: What’s Fueling the Momentum?

Summary
• Velo3D’s stock (VELO) surges 25.21% to $11.87, hitting an intraday high of $12.06.
• Turnover spikes to 777,333 shares, reflecting 9.25% of average daily volume.
• Sector peers like Stratasys (SSYS) rise 3.55%, hinting at broader hardware sector optimism.

Velo3D’s explosive intraday move has captured market attention, with the stock surging from $9.48 to $11.87 in a single session. The rally coincides with a surge in hardware sector activity, driven by news of 6K Additive’s $48M IPO and NVIDIA’s latest GPU advancements. Traders are now dissecting technical indicators and sector dynamics to gauge the sustainability of this momentum.

6K Additive’s IPO Sparks Sector Optimism
The surge in Velo3D’s stock is closely tied to broader enthusiasm for additive manufacturing and 3D printing technologies. The recent $48M IPO by 6K Additive, a peer in the industrial 3D printing materials space, has reignited investor interest in the sector. Additionally, NVIDIA’s announcement of a 72GB VRAM upgrade for its Blackwell GPU has amplified optimism around AI-driven hardware demand. While Velo3D itself lacks direct news, the sector’s momentum has spilled over to smaller players like VELO, which trades at a discount to its 52-week high of $15.

Hardware Sector Rally: Stratasys Leads as Additive Tech Gains Traction
The computer hardware sector has seen a broad upswing, with Stratasys (SSYS) rising 3.55% and 6K Additive’s IPO signaling renewed confidence in additive manufacturing. Velo3D’s 25% intraday gain aligns with this trend, though its price remains 20% below its 52-week high. The sector’s strength is underpinned by AI infrastructure demand and supply chain innovations, with companies leveraging 3D printing for aerospace and energy applications. Velo3D’s niche focus on industrial-grade metal printers positions it to benefit from this tailwind, albeit with higher volatility due to its smaller market cap.

Technical Setup and ETF Implications for Velo3D’s Rally
• MACD: 1.36 (Signal Line: 0.97, Histogram: 0.39) – bullish momentum.
• RSI: 63.69 – neutral to overbought.
• Bollinger Bands: Upper ($12.08), Middle ($6.85), Lower ($1.61) – price near upper band.
• 30D MA: $6.20 – current price ($11.87) significantly above.

Velo3D’s technicals suggest a short-term bullish trend, with the stock trading near its 52-week high. The RSI at 63.69 indicates moderate strength, while the MACD histogram’s positive divergence reinforces upward momentum. Key resistance lies at $12.08 (Bollinger Upper Band), with a breakdown below $9.71 (intraday low) signaling potential reversal. Given the lack of options liquidity and the absence of leveraged ETFs, traders should focus on core technical levels. A breakout above $12.08 could trigger a retest of the $15 52-week high, while a pullback to the $6.85 30D MA offers a reentry opportunity.

Backtest Velo3D Stock Performance
The backtest of VELO's performance after a 25% intraday surge from 2022 to now shows favorable results. The 3-Day win rate is 58.54%, the 10-Day win rate is 65.85%, and the 30-Day win rate is 87.80%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 76.39% over 30 days, suggesting that VELO can deliver significant gains even after such a substantial intraday increase.

Velo3D’s Rally: A Sector Play or Short-Lived Spike?
Velo3D’s 25% intraday surge is a testament to the sector’s renewed optimism, driven by 6K Additive’s IPO and AI hardware demand. While the stock’s technicals favor a continuation above $12.08, caution is warranted given its -3.65 PE ratio and lack of earnings visibility. Stratasys (SSYS) leading the sector with a 3.55% gain underscores the broader trend. Investors should monitor the $9.71 support level and watch for follow-through volume. For now, the move appears to be a sector-driven bounce, but sustainability will depend on earnings catalysts or further additive manufacturing breakthroughs.