This Space Stock Is Up 187% in 6 Months. How Much Higher Can It Fly?

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. The field of quantum computing has taken off by quite a bit this year, and while there have been big ups and equally huge lows, it’s proven wise to stay on the rollercoaster ride of emotions that seemingly only knows how to swing to extreme fear to extreme greed and back.

Add eVToL (flying vehicles, if you will) mobility tech and augmented and virtual reality (AR and VR) into the equation, and it’s tough to know which emerging themes in tech are still worth betting on, especially if there is a bit of overlap. After all, it’s not all too hard to imagine an environment where AR and VR tech not only co-exists with AI, but actually advances at a much more rapid rate.

The same goes with AI and quantum computing technologies. 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.

• AST SpaceMobile (ASTS) has dropped over 25% from all-time highs but remains up 228% year to date.

• Recent Wall Street analyst downgrades lowered AST SpaceMobile price targets, resetting valuation expectations ahead of quarterly earnings.

• AST SpaceMobile provides wireless services to global telecom providers through satellite connectivity technology.

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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.

Of course, high expectations could set the stage for a difficult reaction on the part of the retail crowd. Either way, the stock is still up more than 187% in the past six months and over 228% year to date. After such explosive gains, a steep and painful correction should be on the radar of investors, even if there’s nothing to worry over.

In recent weeks, we’ve witnessed quite a few Wall Street analyst price target downgrades, some of which entail a negative move from current levels. Of course, AST SpaceMobile stock has been running hot, and the latest valuation reset might be needed to set the stage for a more constructive post-earnings trajectory.

As we found out with shares of Palantir (NASDAQ:PLTR) this past week, even a sensational quarterly result can have a negative reaction from investors. It’s all about how the numbers stack up to not only analyst estimates, but investor expectations. And if we’re talking about a high-flyer, shares might need more than a beat and guidance raise to excite.

In any case, I view the setup as quite interesting going into earnings now that AST SpaceMobile shares have lost a bit of froth. With a big update and telecom partnerships likely to power the long-term narrative, I wouldn’t quite give up on the shares right here, just because there are jitters going into the next big number.

As the company powers wireless services for telecom providers across the globe (remember that space mobility entails global accessibility), I do think the name might have a strong enough growth story to come powering back after the stock’s latest slide. Just because shares are in the stratosphere doesn’t mean they can’t rise into the exosphere. And when it comes to AST SpaceMobile, I think there’s a chance of such if it can execute on its game plan.

Will AST SpaceMobile’s quarter be out of this world? Probably not. But the commentary from management might cause analysts to reconsider their recent price target downgrades.