"What Should You Buy After NVIDIA?"... Wall Street's Next Theme Is 'Space'

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[Financial News] As the expansion of artificial intelligence (AI) infrastructure converges with the restructuring of the security industry, the space industry is emerging as the next major investment theme.
\r\nOn the 19th, the securities industry said a new industrial cycle is expected to begin in earnest, led by space data centers, satellite communications, and space defense.
First, SpaceX's initial public offering (IPO) valuation is estimated to exceed $1.75 trillion. If the company is listed and then added to major indexes, while funds flow into space-themed exchange traded funds (ETFs), the move is expected to lift valuation multiples across space-related stocks.
Growth in space data centers is also drawing attention. Demand for data processing is surging as the AI industry expands, but terrestrial data centers face structural limits, including power shortages, permitting delays, and rising costs.
\r\nHana Securities recently projected in a report that SpaceX's 10-year cumulative cost for a space data center would be about $27 billion, giving it a cost advantage over terrestrial data centers, which are estimated at $45 billion to $90 billion. In addition, as Direct-to-Device (D2D) technology, which connects smartphones directly to satellites, enters the early commercialization stage, expectations for market expansion are rising. Approval by the Federal Communications Commission (FCC) for AST SpaceMobile's satellite constellation operations and SpaceX's spectrum acquisition is also cited as a factor boosting growth expectations for the related industries.
\r\nKim Jae-im, a researcher at Hana Securities, said, "Mobile Satellite Service (MSS) spectrum is a scarce resource that cannot be replicated," adding, "The race among SpaceX, Amazon.com, Inc., and AST SpaceMobile, Inc. (ASTS) to secure large-scale holdings shows the market's potential." She continued, "Amazon.com's acquisition of Globalstar Inc. has officially shifted the center of gravity in the D2D market," and noted that "the competition to secure an early lead is now in full swing."
\r\nExpectations are also growing for the space defense market. The scale of the Golden Dome missile defense system, a next-generation missile defense project being pursued by the U.S. government, is expected to reach $185 billion. In particular, with contracts related to space-based interceptors (SBIs) formalized in April this year, market attention is shifting from speculation to actual order opportunities.
Kim said, "The space industry is more than just a theme play. It is a structural growth area where demand for AI infrastructure, communications, and security converges at the same time," adding, "We are entering a phase in which private investment and government projects are expanding together."
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dschoi@fnnews.com Choi Du-seon Reporter