As artificial intelligence (AI) scales, the conversation around infrastructure is changing fast. The upcoming SpaceX initial public offering (IPO) is already generating excitement, with investors looking at secondary plays to benefit from the hype. To that end, one stock could significantly benefit from this focus on space in the coming months: AST SpaceMobile (ASTS).
AST SpaceMobile operates as a cell tower firm in space. It's a first-of-its-kind network, built to provide 4G and 5G connectivity to smartphones without requiring special hardware like satellite dishes. The company isn’t profitable yet, but it sits on something valuable — an infrastructure that could power the future of AI.
AI and high-performance computing workloads have resulted in increasing demand for data centers. This demand is so strong that there isn’t enough infrastructure around to support it. The U.S. Department of Energy projects that, within two years, data centers could account for as much as 12% of total U.S. electricity demand. At this scale, it is incredibly hard to develop the infrastructure that goes along with establishing such data centers. It could take years before some of the projects launched today materialize and enable new data centers to come online.
This has given rise to the concept of data centers in space, where abundant solar energy, low operational costs, and scalability would provide a huge advantage. It could also help reduce the strain currently being put on resources available on Earth. But this is just one part of ASTS stock bull thesis. The other part revolves around the speed and efficiency with which data can be processed in space, directly helping improve decision-making speeds. Even today, significant data is generated in space and sent back to Earth for processing. This not only adds a delay but also incurs transmission costs. Were this data to be processed in space, it would allow users to only bring the useful data back, helping to reduce bandwidth requirements and enable faster decision-making.
AST SpaceMobile stands as one of the companies that could make this concept a reality, thanks to its existing infrastructure. There are challenges, of course, but ASTS stock could skyrocket well before any of the above materializes, making it an attractive buy at this stage.
About AST SpaceMobile Stock
AST SpaceMobile is a U.S.-based company that develops and designs a constellation of BlueBird satellites. It offers a space-based cellular broadband network that connects directly with standard smartphones for both government and commercial applications. The company’s SpaceMobile service is designed to provide mobile connectivity in areas where terrestrial cellular networks are unavailable.
ASTS stock is down 3% year-to-date (YTD) but up more than 180% over the last 12 months. This volatility is to be expected as the stock transitions from trading on hype to the potential value that lies in space. The rally is expected to continue once SpaceX starts trading and investors look for secondary space-related plays.
AST SpaceMobile Continues to Increase Spending
AST SpaceMobile reported its fourth-quarter fiscal 2025 earnings on March 2. Revenue for the quarter came in at $54.3 million, mainly supported by “gateway deliveries and U.S. Government milestones met.” The company’s Q4 non-GAAP adjusted operating expenses rose to $95.7 million, compared with $67.7 million in Q3 2025. Capital expenditures for the quarter also moved higher, reaching $406.7 million compared to nearly $258.9 million in the previous quarter.
For 2026, the company projects revenue to at least double compared with 2025. Full-year 2026 revenue is expected to be in the range between $150 million and $200 million. Adjusted operating expenses for Q1 2026 are estimated at $70 million to $80 million, excluding cost of revenues. Capex for the quarter is expected to remain broadly in line with the Q4 2025, ranging from $350 million to $425 million.
What Are Analysts Saying About ASTS Stock?
The month of April saw considerable analyst activity around ASTS stock, with many reiterating their price targets on shares. The mean price target of $89.58 represents potential upside of 27% from current levels. This might be disappointing for many investors who joined in earlier in the year, but for fresh entrants, the stock offers an attractive risk-reward at these depressed levels.
On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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