2 Stocks to Buy Before the AI Arms Race Moves to Orbit

As artificial intelligence (AI) computing demand keeps outpacing available data center supply, there is a growing bottleneck on land and permitting for new builds, as well as for electricity and water needed for cooling. This is why there is increasing interest in putting data centers in space, which doesn't face these problems.

It might take several years to solve the engineering problems for orbital data centers. But companies are already investing in what seems to be the inevitable solution to continue scaling AI workloads without straining natural resources. Orbital data centers could unlock another wave of AI infrastructure investment -- and the following stocks stand to benefit.

Image source: Getty Images.

1. Nvidia

Nearly every infrastructure road ultimately leads back to the top chip supplier. At GTC 2026, CEO Jensen Huang said Nvidia (NASDAQ: NVDA) is working on a new computer built specifically for data centers in orbit. Its Space-1 Vera Rubin Module is designed to deliver top-tier computing performance in space.

Nvidia-backed Starcloud, a leading orbital data center developer, has already launched a satellite powered by Nvidia's H100 graphics processing unit (GPU). Starcloud will be using Nvidia's accelerated computing platform for future space missions.

Nvidia's latest quarter shows data center spending is still accelerating, with revenue up 92% year over year. This indicates a massive addressable market that could be expanded with infrastructure investments in space.

For example, SpaceX says its Starship will have the payload capacity to deliver 200 tons of satellites per flight to support orbital data centers. That means more chips and components for top semiconductor companies to sell.

Given its momentum and opportunities ahead, Nvidia stock looks cheap, trading at 17 times next year's earnings.

2. Amazon

Amazon (NASDAQ: AMZN) is seeing strong momentum in its cloud business, with Amazon Web Services revenue rising 28% year over year in the first quarter. It's now a $150 billion-a-year business, but opportunities in space could help it cast a wider net for more customers.

Starcloud CEO Philip Johnson recently announced that it will be the first to launch AWS Outposts in space. AWS Outposts brings local compute and storage to a customer site -- but Starcloud plans to deploy it on its next satellite as it works toward launching an 88,000-satellite constellation for an AI cloud network in space.

Amazon is also investing in Leo, a global broadband internet service from space. It faces competition from SpaceX's Starlink, which already has 10 million subscribers. Still, Delta Air Lines selected Amazon Leo for its in-flight internet service, and Amazon also has a partnership with AT&T for hybrid fiber-satellite connectivity. Leo will expand AWS's market by enabling customers to access AI cloud services from almost anywhere on Earth.

Together, these initiatives make Amazon another potential winner as capital flows into space-based AI infrastructure. The stock trades at around 20 times trailing operating cash flow per share, which is toward the low end of its historical range, making it a compelling buy right now.

John Ballard has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.