Jeff Bezos - Russell 1000 - AST5000 ASIC Chip
Big News for AST SpaceMobile!
Dear growth investors,
A lot has happened at AST SpaceMobile (Ticker: ASTS) in the last few days. I'll summarize all the important news for you:
It started on June 4: Scotiabank reiterated the sector outperformance of AST SpaceMobile, maintained the price target at $45.40 and speculated that Jeff Bezos could soon become an investor in AST SpaceMobile.
The speculative rumors about a possible involvement of Amazon or Blue Origin caused the AST SpaceMobile share to rise sharply.
Then, on June 10, AST SpaceMobile announced that the company would be included in the US large-cap Russell 1000 ® Index.
What does AST SpaceMobile’s inclusion in the Russell 1000 Index mean for the company?
1. Increased Visibility and Credibility: The Index tracks the largest 1,000 U.S. companies by market capitalization and reflects AST SpaceMobile’s advancing position as a leader in delivering space-based cellular broadband worldwide. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. The Inclusion signals that AST SpaceMobile is no longer a small-cap speculative play, it’s entered the radar of institutional investors, pension funds, and index-tracking funds.
2. Potential Inflows from Passive Funds: Funds and ETFs that track the Russell 1000 will automatically buy AST SpaceMobile shares, increasing liquidity and potentially supporting the stock price.
3. Institutional Confidence: Entry into this index suggests that AST SpaceMobile has achieved a certain level of stability, size, and governance that larger investors expect. Possible Golden Dome contract imminent?
4. Attracts Analyst and Media Attention: More analysts and media outlets will begin to cover AST SpaceMobile, which could lead to broader awareness and interest among retail and professional investors.
Later, on June 12, AST SpaceMobile announced the completion of the AST5000 ASIC chip after five years of intensive development and production. AST SpaceMobile is now ready to deliver mobile broadband from orbit to anyone, anywhere, anytime!
A key component for the performance of the BlueBird satellites are specially developed ASIC chips, known as AST5000 ASICs. They form the heart of the satellites.
What are AST5000 ASIC chips?
These chips were developed in collaboration with Cadence Design Systems and tested with TSMC. These are not standard chips, but are specifically optimized for the requirements of satellite-based mobile communications.
The chips are optimized for low power consumption and high performance, essential for operations in space where energy and weight are critical factors. They also feature high-speed capabilities for efficient data transmission. The AST5000 ASIC increases the processing bandwidth per satellite tenfold. By integrating these ASICs, BlueBird satellites will be able to support a processing bandwidth of up to 10,000 MHz per satellite. The AST5000 ASIC also enables peak data speeds of up to 120 megabits per second (Mbps). These speeds enable voice and video calls, SMS, and streaming in addition to simple text messaging.
Interested in AST SpaceMobile? You can read the complete analysis for free here:
After yesterday's market close (June 12), AST SpaceMobile also submitted a request to the FCC for approval to launch and operate its planned satellite system for a constellation of 248 satellites.
A footnote notes that an application for Special Temporary Authority will be submitted in parallel with the main application to enable test launches of the satellites while the FCC reviews the overall application. AST SpaceMobile is requesting that the license be granted no later than August 1, 2025. This means commercialization is imminent.
AST SpaceMobile continues to plan to successively launch satellites of its SpaceMobile system, beginning in July 2025, with a new orbital mission to be conducted on average every one to two months. More than 60 satellites are expected to be launched by the end of 2026.
Conclusion
AST SpaceMobile's inclusion in the prestigious Russell 1000 Index represents an important vote of confidence from institutional investors and is expected to significantly increase the company's visibility in the capital markets. Increased demand for the shares not only increases liquidity but also opens the door to additional capital inflows via index funds and professional portfolio managers. At the same time, inclusion in the index validates AST SpaceMobile's ambitious growth strategy, which aims to provide mobile connectivity globally via satellite, an undertaking that, if successfully implemented, has significant revenue potential.
The presence of Jeff Bezos sends a strong signal to investors and the industry: The Amazon and Blue Origin founder, himself a pioneer in private spaceflight, appears to have a strong interest in AST SpaceMobile's technology. Although Bezos' exact role (financial or advisory) has not been officially confirmed, the meeting with Abel Avellan underlines the potential of AST SpaceMobile not only from a technological perspective, but also as a possible complement to existing projects such as Kuiper (Amazon) or New Shepard (Blue Origin).
The AST5000 ASICs are also the cornerstone of the BlueBird satellites. This proprietary technology has ten times the data capacity: 10,000 MHz of processing bandwidth and peak speeds of 120 Mbps. That's enough for millions of data connections.
In my opinion, AST SpaceMobile is literally the most revolutionary company since Apple.
Disclaimer
The content and materials presented or linked to are for informational and educational purposes only and do not constitute financial advice or recommendations and should not be considered as such.
Thanks for the update!