This Space Stock Is Up 238% in the Past Year. Here's How it Stacks Up to the Competition.

Reliable connectivity is the backbone of progress in today's world. Created with a lofty ambition to eliminate dead zones across the globe, AST SpaceMobile (NASDAQ: ASTS) is seeking to pioneer a shift in the world of telecommunications through its next-generation satellite constellations.

With shares experiencing an impressive ascent over the last year, AST SpaceMobile has left its competition in the broadband market in the dust. Let's look at the tailwinds fueling AST SpaceMobile's rise and explore whether the stock remains a good buy in 2026.

ASTS data by YCharts

What does AST SpaceMobile do?

AST SpaceMobile designs low Earth orbit satellites that beam 5G signals to mobile devices. The company has partnerships with over 50 network operators including AT&T, Verizon, Vodafone, and Google.

This model allows terrestrial carriers to extend their coverage across a variety of remote, rural, urban, and oceanic regions. The company's decision to vertically integrate its manufacturing facilities domestically should help produce more cost-efficient satellite deployments as the company scales.

Image source: Getty Images.

Why is AST SpaceMobile stock surging?

Smart investors are surely wondering what fueled the meteoric rise in AST SpaceMobile stock over the last year. I see a number of factors:

• Successful deployments of the BlueBird satellite model help validate the company's orbital campaigns.
• The company has secured $1.2 billion of revenue commitments across commercial and public sector contracts.
• It has growing support from institutional investors, including Alphabet, which has resulted in a number of price target upgrades from Wall Street analysts.

These dynamics are what help paint AST SpaceMobile as a next-generation disruptor compared to legacy wireless equipment companies. The company's space-based model carries the potential for high growth and a first-mover advantage over an otherwise maturing terrestrial communications market that relies on cyclical device upgrades from consumers and enterprises.

Is AST SpaceMobile a good stock to buy?

In my eyes, what really makes AST SpaceMobile a compelling investment opportunity is its under-the-radar position in the artificial intelligence (AI) realm.

Large language models, predictive analytics, and autonomous systems require constant access to high bandwidth. AST's approach to delivering connectivity could pave the way to more democratized access to AI-enabled technologies, more seamless edge data collection, and improved latency in cloud-based environments.

While the company faces execution risk, an investment in AST SpaceMobile comes with asymmetric upside: an outsize reward from its disruption of a global communications market. Despite the stock's momentum, AST SpaceMobile could still be a good buy in 2026 for those with the right investor profile. If you're willing to tolerate volatility, AST SpaceMobile could be worth a look for an AI-themed growth portfolio.

Adam Spatacco has positions in Alphabet. The Motley Fool has positions in and recommends AST SpaceMobile and Alphabet. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.