Nvidia and the Investment Cycle
Nvidia (NVDA) reported quarterly revenue of $96.2 billion, up over 100%. Data center revenue grew even more, by 117%. Its revenue growth forecast for 2028 is 70%. Nvidia's best days are still ahead. It holds a monopoly on its chips and some of the software tied to data centers and other parts of its work. It is a great stock leading the whole market.
Nvidia proves a point: investors who spotted a transformative technology trend early made large amounts of money on it. That same logic now points to space and to AI in healthcare. Other technology sectors are ahead of where Nvidia already is.
The Case for Space
Space is the right place for future data centers. The real story is not just putting satellites into orbit or landing on Mars; it is what is happening around data centers, the community, and politics that gets pulled in through elections. AI plus space is a major emerging topic that is really happening, with many companies now working on it.
Five years ago the space economy was not viewed favorably. Now there are technological advances, commercial demand, strong demand around SpaceX, and falling launch costs.
Satellite communication has already become normal. The same shift will happen with AI. We will keep building more data centers, but we will run out of resources and physical space for them on the ground. Orbital data centers are possible and are part of Elon Musk's plan. There are already too many satellites, so traffic is very high, but companies are working on the problem. Some elements, like Google and others, are building data centers offshore, moving them out. Satellites, data, and space are the next wave of AI communications and AI technologies.
Space Companies to Watch
Rocket Lab (RKLB) and AST SpaceMobile (ASTS) are the leaders working on space and data, operating behind the scenes. Planet Labs (PL) is another strong company with its own satellites.
AST SpaceMobile (ASTS) is trying to connect smartphones directly to satellites. If it scales this technology, it changes the traditional telecom industry.
Telecom is always needed. The last time an infrastructure build-out like this happened was in Silicon Valley in 1997, when fiber networks were over-built. Now there is a war going on where cables and fiber optic lines are being cut. Doing that to satellites is very hard. We need every bit of this satellite infrastructure we can build. The technology has been around a long time and works, so we need every one of these satellites, which puts these companies on the right track.
Judging Hype Against Real Value
Some space stocks already have huge expectations built into their price even though the businesses are relatively early-stage. To tell a true long-term opportunity from a name riding general hype, look at whether the company has infrastructure that actually works and is building what will be needed in the future. Check the engineering and the track record. Some companies are very new, but their people are not new to the industry; they are engineers who worked at NASA and other places, and SpaceX has deep experience. These are professionals who know what they are doing in building infrastructure, not just any startup.
If forced to pick one space stock to own long-term, the choice is Rocket Lab (RKLB). It is a good company with clear long-term potential.
AI in Healthcare
AI in healthcare is the number one direction. New companies in AI for healthcare are emerging that will be great and will benefit both patients and doctors.
AI drug discovery methods are impressive. Several companies are working behind the scenes and are not yet on the market. One, Try Discovery, uses AI to find molecules. Moderna (MRNA) is another, developing a vaccine against early-stage cancer. Diagnostics are very important in healthcare.
The broader lesson: this is not Nvidia or Kodak. Investors should look to other technology segments that are not even new anymore and have been around a long time - space and healthcare AI among them.
