Before we jump into today’s Market Insights…
A quick reminder that I’m hosting a LIVE event tomorrow at 5PM ET focused entirely on what may become one of the biggest investing trends of the next decade: the Space Economy.
I’ll break down why I believe the eventual SpaceX IPO could permanently reshape the sector…
Why money is already beginning to flow back into space stocks…
And why several small-cap companies Wall Street is still ignoring today could potentially become some of the biggest winners.
If you haven’t reserved your spot yet, you can do so here:
Now onto today’s topic…
One of the biggest investment trends over the last several years has been the explosion in AI infrastructure spending.
Companies are spending hundreds of billions of dollars building data centers to support artificial intelligence, cloud computing, and next-generation digital services.
And that spending wave is only accelerating.
What If the Next AI Buildout Happens in Space?
That may sound extreme at first…
Yet recent reports suggest companies including SpaceX and Google $GOOGL ( ▲ 3.86% ) have discussed the future potential of orbital data centers - essentially moving computing infrastructure into space.
At the same time, billionaire investor Ron Baron recently suggested SpaceX could eventually become “the largest company on the planet.”
That’s a bold statement.
But when you step back and look at the broader trends developing underneath the surface, you begin to understand why investors are becoming increasingly interested in the long-term potential of the space economy.
This Is No Longer Just About Rockets
The ecosystem around space-based infrastructure is evolving rapidly.
Satellite communications.
Earth observation systems.
Defense networks.
Autonomous systems.
Global internet connectivity.
And potentially even AI computing infrastructure in orbit.
According to recent industry estimates, the Orbital Data Center (ODC) market could eventually support as many as 18,600 active satellites and approximately 1.54 effective gigawatts (GW) of computing power by 2035.
That is a massive infrastructure opportunity.
Especially when you consider how quickly demand for AI compute capacity is already growing here on Earth.
Importantly, if this trend develops the way many expect, the opportunity likely extends far beyond SpaceX itself.
The "Picks and Shovels" Opportunity
Historically, some of the biggest investment winners during major technological shifts are often the smaller “picks and shovels” companies connected to the broader ecosystem.
We saw it during the internet boom.
We saw it in semiconductors and AI infrastructure.
And I believe we could eventually see something similar develop across parts of the space economy.
The Small-Cap Space Stocks Wall Street Is Ignoring
I’ve been spending a lot of time researching smaller space-related companies lately.
Because while most investors remain focused on the same crowded mega-cap technology trades…
There are tiny companies tied to satellite infrastructure, communications systems, launch technology, and space-based data services that Wall Street still barely follows.
And if capital really begins flowing into the sector ahead of a future SpaceX IPO, those smaller names could become very interesting.
Of course, not every company will succeed.
This remains an emerging and highly speculative area of the market.
But one thing is becoming increasingly clear:
The space economy is becoming much more real than many investors realize.
And I’ll explain exactly why during tomorrow’s LIVE event at 5PM ET.
👉 Click here to reserve your seat.
Here’s to the future,
Matt McCall
Founder, NXT Wave Research
