AST SpaceMobile (ASTS) Climbs 10.7% as Elon Musk Bets on Space Sector to Boost AI

We recently published 10 Stocks Crushing Wall Street With Massive Gains. AST SpaceMobile Inc. (NASDAQ:ASTS) was one of the top performers on Tuesday.

AST SpaceMobile snapped two days of losses on Tuesday, jumping 10.72 percent to close at $115.76 apiece as investors took heart from Elon Musk’s optimistic comment for the space sector, saying that it could be the most “cost-effective” way to produce AI compute.

In a memo on the SpaceX website, Musk said that satellites in space would transform computing by directly harnessing near-constant solar power with little operating or maintenance costs.

“It’s always sunny in space! Launching a constellation of a million satellites that operate as orbital data centers is a first step towards becoming a Kardashev II-level civilization, one that can harness the Sun’s full power, while supporting AI-driven applications for billions of people today and ensuring humanity’s multi-planetary future,” he said.

AST SpaceMobile Inc. (NASDAQ:ASTS) rallied alongside its peers following the comments.

The announcement followed his successful merger of Musk’s companies, SpaceX and xAI, which was believed to have propelled the former’s valuation to $1 trillion, and the latter to $125 billion.

In other news, AST SpaceMobile Inc. (NASDAQ:ASTS) is set to launch late this month its next-generation Block 2 Bluebird Satellite to low Earth orbit.

The launch will be administered by Blue Origin’s New Glenn-3 and will take off from Launch Complex 36 at Cape Canaveral Space Force Station.

AST SpaceMobile Inc. (NASDAQ:ASTS) selected Blue Origin’s New Glenn launch vehicle in November 2024 as part of its launch campaign for its cellular broadband network. The Bluebird satellite network will support commercial and government telecommunications applications, enabling users to remain connected as their devices transition between terrestrial cellular networks and space-based coverage.

While we acknowledge the potential of ASTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.