"It's easy to forget about the space stocks, such as satellite connectivity play AST SpaceMobile ( NASDAQ:ASTS), when you've got multiple different hot themes in tech starting to heat up. Undoubtedly, it's not just artificial intelligence (AI) and the rise of agents (as well as embodied AI) that have captured the hearts of growth-seeking investors."
"That much was made clear after Nvidia ( NASDAQ:NVDA) pulled the curtain on its intriguing NVQLink technology, which, I think, could take quantum AI to the forefront. Either way, Nvidia shares are flying high again, and it seems likelier than not that the $5 trillion market cap milestone will be breached before 2025 comes to a close."
"In any case, AI might also be able to give space plays a much-needed boost as the next era of connectivity looks to enter the mainstream at some point over the next few years. Though shares of AST SpaceMobile are on the descent again, sinking more than 25% from all-time highs, I'm more inclined to think the dip is just another blip to consider buying as the firm runs into its quarterly earnings."
Space-focused stocks are being overshadowed by multiple hot technology themes, including AI, quantum computing, eVTOL mobility, and AR/VR, creating investor competition. Quantum breakthroughs and Nvidia's NVQLink raise prospects for quantum AI and contribute to elevated valuations. AST SpaceMobile shares have fallen more than 25% from all-time highs and entered a bear market, but AI-driven demand for ubiquitous connectivity could lift space plays as connectivity expands. The recent price dip may present a buying opportunity ahead of quarterly earnings, although high investor expectations could prompt a sharp retail reaction.
Read at 24/7 Wall St.
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