MW This satellite stock could benefit from a booming $200 billion opportunity

By James Rogers

Wireless, broadband and defense markets are contributing to a huge opportunity for satellite companies focused on low-Earth altitudes, says BofA

AST SpaceMobile, Starlink and Amazon's Project Kuiper are poised to tap a $200 billion opportunity around low-Earth-orbit satellites.

The market for low-Earth-orbit satellites may still be in its early stages, but it presents a huge opportunity for a select group of companies including SpaceX's Starlink and rival AST SpaceMobile Inc., according to Bank of America.

Low-Earth orbit, or LEO, refers to an altitude of 1,200 miles or less - an area of space that is seeing growing activity from commercial satellite companies. BofA estimates that the total addressable market for the LEO satellite industry could be around $200 billion, with the wireless, broadband and defense markets accounting for about $80 billion of that number.

U.S. wireless companies like AT&T Inc. $(T)$ and Verizon Communications Inc. $(VZ)$ stand to benefit, wrote BofA analyst Michael Funk, as they can use the service to fill in "dead zones" and grow average revenue per user through usage-based and subscription plans that take advantage of satellite connectivity.

But the biggest beneficiaries could be the companies building out these satellites. BofA cited Starlink, Amazon.com Inc.'s (AMZN) Project Kuiper and space-based broadband company AST SpaceMobile (ASTS) as the U.S. companies poised to harness this opportunity. Starlink already has by far the biggest satellite footprint, but Funk sees room for multiple winners.

While Starlink is private and Project Kuiper is just one piece of Amazon's sprawling empire, AST SpaceMobile offers a more direct way for public-market investors to play the LEO trend.

AST SpaceMobile has six satellites in orbit, although BofA notes that its constellation will grow well beyond that. Crucially, AST SpaceMobile has relationships with about 50 mobile-network operators, according to Funk.

The analyst also highlighted areas with no wireless 5G coverage in western parts of the U.S. that could be candidates for service provided by AST SpaceMobile.

Last month, when it reported its second-quarter results, AST confirmed its "fully funded" plan to deploy 45 to 60 satellites into orbit by the end of 2026 to support space-based cellular-broadband service coverage in key markets such as the U.S., Europe and Japan, as well as for the U.S. government. The Midland, Texas-based company currently has five fully operational satellites and one test satellite in orbit, used for both commercial and government applications.

Seen as something of a darling among space stocks, shares of AST SpaceMobile have skyrocketed in recent years. The stock is up 383.5% over the last three years, outpacing the S&P 500 index's SPX 70.4% gain.

As of Sep. 15, Starlink has a total of 8,405 satellites in orbit, of which 8,390 are operational, according to data collated by astrophysicist Jonathan McDowell. Among those, BofA has identified a 650-strong constellation of Starlink satellites as core to the company's ability to tap the $200 billion LEO market.

Project Kuiper's constellation has grown to more than 100 satellites as it attempts to build a 3,236-strong constellation.

-James Rogers

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September 18, 2025 16:55 ET (20:55 GMT)

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