The connectivity industry is reshaping global infrastructure at an unprecedented pace. From 5G networks lighting up smart cities to low-Earth orbit satellites promising broadband access in the most remote regions, innovation is accelerating—and so is investor interest. As demand for high-speed, low-latency communication rises across industries, the pressure to identify top-performing stocks intensifies.

Navigating this fast-moving sector demands sharp analysis. Two standout players—AST SpaceMobile (ASTS) and Qualcomm (QCOM)—are tapping into transformative trends, but through fundamentally different approaches. ASTS aims to revolutionize mobile broadband from space, while QCOM continues to scale its dominant position in terrestrial 5G and connectivity chipsets.

This post delivers a data-driven, side-by-side comparison examining the growth potential of ASTS and QCOM. Revenue trajectories, market exposure, technological innovation, and valuation benchmarks are on the table. Which one is better positioned to capture the future of global connectivity? Let’s break it down.

Inside the DNA of Two Connectivity Powerhouses

AST SpaceMobile (ASTS)

Incorporated in 2017, AST SpaceMobile emerged with a singular vision: to eliminate the connectivity gap for billions of mobile users worldwide. Based in Midland, Texas, ASTS set out to build the world’s first and only space-based cellular broadband network directly accessible by standard mobile phones—without modifying hardware or software on the user end.

Their mission wraps around a bold claim: enabling 4G and 5G broadband speeds directly from space—everywhere on Earth. The company’s technology revolves around building large, low Earth orbit (LEO) satellites equipped to communicate directly with unmodified mobile phones. No intermediary ground infrastructure, towers, or gateways.

ASTS has secured commercial agreements and understandings with over 40 mobile network operators globally, including heavyweights like Vodafone, Rakuten, and AT&T. These alignments position the firm to impact markets traditionally underserved by terrestrial carriers—primarily in Africa, Asia-Pacific, and parts of Latin America—while simultaneously laying tracks into urban and suburban areas impacted by coverage gaps.

Qualcomm (QCOM)

Qualcomm’s story began in 1985, and since then, it has evolved into a dominant force in the semiconductor and wireless communication space. Headquartered in San Diego, California, the company pioneered CDMA (Code Division Multiple Access), which laid the groundwork for modern 3G networks, and later became central to the development of 4G LTE and 5G standards.

Its chips and system-on-a-chip (SoC) solutions power smartphones, automotive systems, IoT devices, laptops, and network equipment. Flagship products such as the Snapdragon series have become the default pairing for thousands of mobile devices globally. At the core, Qualcomm doesn’t manufacture phones or consumer products—it licenses its technologies and sells advanced chipsets to equipment makers, handset manufacturers, and other industrial clients.

With operations spanning over 170 countries, Qualcomm works with virtually every major phone OEM, including Samsung, Xiaomi, and Oppo, and is a strategic technology provider for Tier-1 automotive brands and cloud computing players. Its 5G leadership has been further solidified by early deployments in mmWave and sub-6 GHz spectrum, pushing high-throughput, low-latency solutions into both mobile and fixed wireless access (FWA) networks.

Revenue Engines and Strategic Paths: ASTS vs. QCOM

AST SpaceMobile: Building a Network, Not Yet the Profits

AST SpaceMobile operates a B2B model centered around delivering space-based broadband to consumer mobile phones—without the need for terrestrial infrastructure. The company’s approach hinges on enabling direct-to-device connectivity via low Earth orbit satellites, partnering with global telecom operators to extend their coverage into rural and unreachable regions.

The core product is a space-based cellular broadband network. This enables mobile network operators (MNOs) to expand service without the capital intensity of land towers or fiber installations. By plugging directly into operators’ networks, AST offers incremental capacity and coverage as a wholesale solution, effectively selling bandwidth to carriers rather than subscribers.

Monetization is still conceptual at this stage. As of late 2023, revenue remains negligible. The company is in the capital expenditure-heavy phase of launching and scaling its satellite constellation, with BlueWalker 3 currently orbiting as a test platform. Future earnings hinge entirely on infrastructure deployment, regulatory approvals, and successful commercial integration with mobile carriers.

Qualcomm: Revenue Backbone Built on Licensing and Silicon

Qualcomm’s business model splits into two powerful verticals: technology licensing (QTL) and products and services (QCT). QTL, the licensing arm, benefits from a long-standing portfolio of essential patents across 3G, 4G, and 5G. Every smartphone manufacturer that builds cellular-enabled devices pays Qualcomm royalties—regardless of whether the devices use Qualcomm chips. These are high-margin transactions, with operating margins in the QTL segment consistently above 70%.

On the product side, Qualcomm designs and sells application processors, mobile modems, RF systems, and increasingly AI-capable chips for a wide array of applications. Flagship Snapdragon SOCs power premium Android smartphones, while its silicon is deeply embedded into automotive systems, PCs, AR/VR devices, and an exploding number of IoT endpoints.

• QCT brought in $36.2 billion in fiscal 2023, accounting for over 80% of total revenue.
• QTL added $6.5 billion in high-margin licensing revenue over the same period.
• Combined, these verticals yield scale, profitability, and resilience against industry cyclicality.

Unlike ASTS, Qualcomm monetizes today—at scale. Its revenue isn’t speculative or deferred. It’s based on diversified channels feeding off a global tech ecosystem, with hardware sales converting IP into recurring royalties and long-term contracts.

Which Connectivity Stock Holds Stronger Ground: Market Opportunity Comparison Between ASTS and QCOM

Satellite Communication Technologies and Emerging Markets

AST SpaceMobile (ASTS) is building its business on a compelling mission: creating the first and only space-based cellular broadband network directly accessible by standard mobile phones. This places ASTS at the nexus of satellite and telecom, addressing one of the largest connectivity gaps in modern communication—areas with weak or no cellular coverage.

Globally, over 5 billion mobile subscribers still face inconsistent access to broadband services, particularly in rural or infrastructure-challenged regions across Africa, Latin America, Southeast Asia, and remote parts of North America. ASTS targets this underserved segment by enabling direct-to-device communication from low Earth orbit satellites. Unlike traditional satellite providers requiring specialized hardware, ASTS aims to reach standard smartphones without modification.

The scale of this opportunity is mammoth. According to the GSMA’s Mobile Economy report, nearly 40% of the world's population lacked mobile internet connectivity in 2023, equating to over 3 billion people. ASTS seeks to turn those gaps into revenue by partnering with global mobile network operators and deploying satellite infrastructure where terrestrial towers are commercially or logistically unfeasible.

ASTS isn't chasing urban customers who already have 5G. It’s pursuing the “last-mile” user—those at the edge of networks, from fishermen in the Philippines to farmers in rural Kenya. This niche, often ignored by traditional telcos due to high costs and limited infrastructure ROI, forms a high-volume, high-impact customer base for ASTS’s model.

5G and Wireless Connectivity Expansion

Qualcomm (QCOM), in contrast, dominates developed and rapidly-developing markets where 5G infrastructure is accelerating. Its semiconductors and modem systems are foundational to nearly every major 5G-enabled smartphone on the market. From Apple and Samsung to Xiaomi and Oppo, OEMs rely on Qualcomm’s Snapdragon platforms for high-speed wireless performance, energy efficiency, and advanced network compatibility.

According to the Ericsson Mobility Report, global 5G subscriptions are expected to exceed 1.9 billion by the end of 2024, growing to 5.3 billion by 2030. Qualcomm is primed to harness this surge. Its integrated solutions are not just used in phones but are rapidly expanding into automotive systems, industrial IoT, fixed wireless access, and augmented reality devices—entrenching QCOM deeper into high-growth verticals beyond traditional mobile.

Qualcomm’s addressable market also benefits from economies of scale. The booming growth of private 5G networks in enterprise settings, carrier aggregation, and millimeter-wave deployment creates layers of future use-cases, all underpinned by its chipsets and reference designs. This breadth gives QCOM resilience and diversified market exposure across consumer, commercial, and infrastructure applications.

Where ASTS targets untapped regions with long-term infrastructure aspirations, Qualcomm leverages its entrenched ecosystem relationships and technological IP to capitalize on accelerating global adoption trends in wireless connectivity. Each targets distinct user bases—ASTS with the globally unconnected billions, Qualcomm with high-end, high-frequency, connected tech markets.

Breaking Down the Numbers: Financial Performance and Sales Metrics

Revenue Growth and Profitability Metrics

AST SpaceMobile (ASTS) and Qualcomm (QCOM) sit at opposite ends of the corporate maturity spectrum, and their financial statements reflect that contrast with stark clarity.

• Revenue Trajectory: Qualcomm reported $9.39 billion in revenue for Q1 FY2024, according to its latest 10-Q filing, representing a 5% increase year-over-year. In contrast, ASTS generated $0.5 million in revenue during the same period, emphasizing its position in the early commercial stage.
• Profitability: Qualcomm achieved a net income of $2.77 billion in Q1 FY2024, translating to a net profit margin of approximately 29.5%. ASTS, in comparison, recorded a net loss of $57.5 million in Q1 FY2024, reflecting ongoing pre-scaleup losses typical of satellite infrastructure businesses in the build-out phase.
• Gross and Operating Margins: Qualcomm maintained a gross margin of 56.6% and an operating margin of 30% during the quarter. ASTS, on the other hand, operated at negative margins, with no meaningful gross income to offset R&D and SG&A expenses.
• Cash Burn: ASTS used $74 million in operating cash in 2023 while holding $126 million in cash and cash equivalents by year-end. As of Q1 2024, they continue to invest heavily in satellite design, ground infrastructure, and regulatory integration without steady revenue streams.

QCOM functions as a consistently cash-generating enterprise while ASTS remains deep in its capital-intensive development phase. The financial divide is not merely one of scale; it’s structural.

Investment Efficiency

Capital and operational deployment differ significantly between ASTS and QCOM. Each company channels its investment dollars with a distinct set of priorities and expected returns.

• R&D Spending: Qualcomm allocated $2.08 billion to research and development in Q1 FY2024, making up 22.1% of revenue. This includes breakthroughs in 5G chipsets, AI acceleration, and IoT platforms. ASTS invested $23.9 million in R&D over the same period, a figure equal to nearly 4,780% of its reported revenue, underlining its heavy dependency on innovation-led growth.
• Capital Expenditure: ASTS directed its capital expenditure toward satellite manufacturing facilities, launch capacity, and cellular-to-satellite interfacing equipment. These are long-asset-cycle investments that defer monetization until constellation assets become operational. Qualcomm, by contrast, prioritizes capital efficiency, investing in advanced node semiconductor processes, IP licensing, and strategic integrations of AI into mobile system-on-chip products.

Qualcomm’s capital investments generate predictable short- and mid-term returns. ASTS, by necessity, accepts longer lead times and higher uncertainty in exchange for potential scalability in global connectivity coverage. Their diverging approaches make direct comparisons more a matter of investor alignment than financial benchmarking. Are you looking for high-risk visionary growth or high-efficiency compounded returns?

Valuation and Stock Price Performance: Dissecting Market Confidence

Market Capitalization and Valuation Multiples

AST SpaceMobile (ASTS) trades as a small-cap stock with a market capitalization hovering around $650 million as of Q2 2024. The company remains pre-revenue and entirely speculative in valuation, as its current worth reflects investor expectations about future infrastructure milestones and commercial network launches. Traditional valuation metrics like price-to-earnings (P/E) and enterprise value to EBITDA (EV/EBITDA) are not applicable, as ASTS has not yet reached operational profitability.

Qualcomm Inc. (QCOM), by contrast, holds a massive market capitalization of approximately $190 billion as of Q2 2024. Valuation multiples provide a grounded perspective—the company trades at a forward P/E ratio of about 16.7x and an EV/EBITDA multiple near 10.4x, according to FactSet data. These figures suggest a blend of measured growth expectations and entrenched profitability. Qualcomm’s valuation reflects both stable earnings and confidence in its continued leadership in mobile connectivity technologies.

Recent Stock Price Trends

Over the past 12 months, ASTS has exhibited high volatility. Shares declined over 40% between April 2023 and April 2024, driven by delays in satellite deployment schedules and investor uncertainty regarding the path to commercialization. However, following successful test calls using unmodified smartphones in early 2024, the stock staged a partial comeback, gaining over 20% within weeks. Reaction to sector updates, such as spectrum allocation and FCC approvals, triggered sharp spikes and drops, illustrating its sensitivity to developmental news.

QCOM experienced a steadier trajectory. Between April 2023 and April 2024, the stock delivered a total return of roughly 9%, outperforming the Philadelphia Semiconductor Index (SOX), which rose approximately 6% in the same period. Qualcomm responded favorably to positive earnings surprises and new chipset design wins, particularly in the AI-enabled smartphone and automotive segments. That said, it also mirrored sector headwinds, dipping briefly during broader tech pullbacks in late 2023.

In this divergence of performance, sentiment surfaces clearly: the market prices ASTS on vision and transformation, but values Qualcomm on cash flows and ecosystem gravity. How does that shape your expectations for the next 12 months?

Unpacking the Headlines: Key News and Industry Trends Shaping ASTS and QCOM

AST SpaceMobile: Milestones in Space-Based Connectivity

AST SpaceMobile has maintained a steady pace of progress throughout the first half of 2024. The most significant development came in April when the company's BlueWalker 3 satellite successfully established a 5G voice and data link directly between standard smartphones and the satellite from space. This operational proof of concept marked a leap forward in space-based mobile communications.

Strategic partnerships continue to fuel ASTS’s momentum. Collaborations with mobile network operators including Vodafone, Rakuten, and AT&T have advanced beyond memoranda of understanding into active integration plans. AT&T, in particular, has reaffirmed its commitment, stating publicly that ASTS technology will play a key role in augmenting its rural coverage roadmap.

Regulatory developments have also moved forward. In May 2024, AST SpaceMobile received a green light from the FCC to begin commercial testing of its satellite-to-cell service in at least 7 U.S. states. This development aligns with the company’s plans to launch five additional BlueBird satellites later this year, aiming to provide initial operational capability by Q1 2025.

Qualcomm: Pushing the Edge of AI and Silicon Innovation

Qualcomm's momentum in 2024 has been defined by its aggressive push into on-device AI and edge computing. In February, the company unveiled the Snapdragon X Elite chipset, optimized for AI model deployment directly on PCs and smartphones, and already tested with over 75% of major Android OEMs.

New deals have further solidified its presence in next-gen mobile hardware. Samsung confirmed it will continue using custom-tuned Snapdragon processors for its Galaxy S25 series, while negotiations with Apple suggest a potential extension for 5G modem supply into 2026. Qualcomm’s diversification beyond handsets continues, with automotive chip design revenue increasing by 35% year-over-year as of Q2 2024, powered by partnerships with Mercedes-Benz and General Motors.

Shared Industry Currents: Tech Tensions and Supply Chain Evolution

The macro environment in which ASTS and Qualcomm operate is both volatile and delivering new opportunities. Ongoing U.S.-China tech friction has accelerated domestic onshoring of semiconductor production. Over $52 billion in CHIPS Act subsidies are now being disbursed, directly influencing Qualcomm’s long-term fab partnership decisions, particularly with TSMC and GlobalFoundries.

In the satellite and space communications sector, growing commercial demand is reshaping supply chains as well. Launch costs have dropped—SpaceX’s rideshare program currently offers satellite deployment for as low as $275,000 per payload—lowering barriers for entrants like ASTS. Meanwhile, the dual-use nature of space tech is prompting heightened scrutiny from both NATO and U.S. defense agencies, which could open doors for public-private alliances.

Looking across AI, mobile infrastructure, satellite comms, and global trade policies, the speed of technological convergence continues to blur traditional industry lines. How each company responds to this complexity could determine their next five years of growth.

Mapping the Competitive Terrain: ASTS and QCOM Under Pressure

ASTS Faces a Crowded Orbit

AST SpaceMobile's mission to build a space-based cellular broadband network collides with several well-funded and technically advanced competitors. Starlink, backed by SpaceX, holds a massive lead in satellite deployment with over 5,400 operational satellites as of March 2024, according to data from Jonathan McDowell’s satellite catalog. While Starlink currently focuses on broadband rather than direct-to-device cellular, its infrastructure and brand dominance create a high barrier to customer adoption for newer players like ASTS.

Lynk Global has taken a direct-to-device approach akin to ASTS and has already received regulatory approval from the FCC as the first commercial satellite phone service. Their proven ability to connect standard phones to satellites, plus early traction in emerging markets, puts them in direct competition for spectrum and partnerships.

Then there’s Amazon’s Project Kuiper, which plans to deploy over 3,200 satellites. Test launches began in late 2023 with service expected to roll out commercially in 2025. Although Kuiper’s initial focus is on broadband, Amazon’s ecosystem integration and logistical dominance could allow rapid horizontal expansion into cellular broadband with strategic intent.

QCOM Navigates a Dense Silicon Ecosystem

Qualcomm’s position in mobile chipsets remains strong, but it operates within a ferociously competitive semiconductor space. MediaTek, particularly with its Dimensity series, continues to gain share in mid-range and upper-mid devices. In Q4 2023, MediaTek held a 28% market share in smartphone SoCs, while Qualcomm controlled 24%, according to Counterpoint Research. MediaTek’s strength in 5G penetration across cost-sensitive regions exerts pressure on Qualcomm’s ASPs (average selling prices).

Intel and Samsung LSI complicate the landscape further. While Intel is not a direct competitor in mobile chips, its AI accelerator ambitions overlap with Qualcomm’s Snapdragon efforts targeting PCs and edge devices. Samsung, meanwhile, continues to push forward with Exynos chips despite recent struggles, and maintains chip development momentum with internal use in Galaxy devices.

The most profound long-term threat comes from Apple’s in-house silicon. With the successful integration of the M-series chips in MacBooks and A-series in iPhones, Apple aims to replace Qualcomm modems with its custom 5G radio chips by 2025. That scenario, if realized, could strip away one of Qualcomm’s most profitable customers, directly impacting QCOM's licensing revenue model.

Competitive Pressure: Implications for Future Growth

ASTS must contend with high-capex rivals that boast operational advantages and regulatory momentum. Its edge lies in being the only listed pure-play in space-based mobile broadband, but that edge narrows if competitors scale execution faster. Each round of launch delays or funding constraints could tilt the perception of feasibility against ASTS.

Qualcomm’s path to growth requires constant technological reinvention under acute margin pressure. Competition in both premium and budget SoCs—as well as threats to its licensing dominance—demand consistent innovation. However, its diversification into automotive and IoT verticals creates alternative growth engines that don’t rely solely on smartphones.

• ASTS faces existential competition from deep-pocketed tech giants with faster launch pipelines and broader product ecosystems.
• QCOM encounters operational competition across segments, with the threat of customer attrition but a more diversified income structure.

Decoding Growth: ASTS vs. QCOM Investment Thesis

AST SpaceMobile (ASTS): Chasing a Transformational Upside

AST SpaceMobile operates with a moonshot vision—building the first space-based cellular broadband network directly to standard mobile phones. The company targets an immense, underserved market of over 5 billion mobile users worldwide, particularly those in rural and remote regions with little to no coverage.

Its upside relies heavily on capturing that unconnected or under-connected global user base. According to the GSMA, around 3.4 billion people lived outside of reliable mobile internet coverage in 2023. ASTS aims to commercialize that gap. However, the technical and capital challenges are steep. Their first commercial satellite, BlueWalker 3, successfully demonstrated space-to-phone communication, but full deployment of a functioning constellation will take years and billions of dollars. The estimated capital expenditure for global coverage could exceed $1.5 billion.

Investors drawn to ASTS are betting on a winner-takes-most outcome. If successful, the company could generate recurring revenue from licensing agreements with major telecom operators worldwide. Yet, until full-scale operational capability is achieved, the company will remain in a heavy cash-burn phase. This creates a scenario where profitability is deferred, and fundraising risks remain high.

Qualcomm (QCOM): Scalable Innovation Anchored in Cash Flow

Qualcomm presents a markedly different investment thesis, rooted in established profitability and a diversified growth strategy. The company’s flagship Snapdragon chips anchor a dominant position in mobile, but management has aggressively expanded into higher-growth verticals like automotive, AI processing, and edge computing.

In 2023, Qualcomm generated $35.8 billion in revenue, with approximately $1.3 billion coming from automotive—a figure projected to grow to $4 billion annually by 2026, based on signed design wins. Meanwhile, its AI edge chip segment is addressing demand from industries ranging from IoT to enterprise-grade computing.

Backed by a robust balance sheet and steady cash flows, Qualcomm also returns capital to shareholders through buybacks and a 2.4% dividend yield. The financial cushion allows for strategic acquisitions and R&D investments without diluting equity or resorting to risky debt levels.

Which to Choose? Risk Appetite Defines the Bet

The divergence between these two stocks lies not only in financial sheets but in the type of investor they appeal to. Risk-tolerant investors willing to park capital for several years without revenue certainty may find ASTS appealing, especially if betting on disruptive innovation in space-based communications. Long time horizons and a stomach for volatility are prerequisites.

Conversely, investors seeking exposure to transformative technologies but unwilling to forgo cash flow and yield may lean toward Qualcomm. The company balances innovation with stability, providing a smoother ride in turbulent markets while steadily expanding into frontier tech sectors.

Where do your convictions align—near-term profitability with incremental innovation, or long-term disruption with near-term risk? One offers footholds; the other shoots for the stars.

Weighing Future Connectivity: ASTS vs. QCOM Final Analysis

AST SpaceMobile and Qualcomm approach the connectivity race from opposite ends of the spectrum. One is pushing the frontier of low-Earth orbit satellites; the other is cemented in decades of terrestrial wireless dominance. Each company brings powerful momentum—but not without tradeoffs.

Strengths and Weaknesses Recap

• ASTS: Offers disruptive technology with global satellite-to-smartphone connectivity. The massive total addressable market is largely untapped, but execution risk remains high. Limited revenue, large capital requirements, and negative free cash flow define its current profile.
• QCOM: Commands extensive market share in mobile chipsets and licenses foundational technologies to carriers and OEMs. Its strength lies in diversification across 5G, IoT, and automotive, yet its revenue growth has shown signs of slowing due to handset market saturation.

Evaluating Growth Potential

ASTS holds asymmetric upside as a high-risk, high-reward contender. The company is creating an entirely new vertical in global broadband, and if successful, will reshape how devices connect worldwide. However, capital intensity and regulatory logistics will pressure short- and medium-term growth. Investors seeking exponential, long-horizon returns may see strong alignment—especially if ASTS executes proof-of-concept service with current MNO partnerships.

Qualcomm, by contrast, sits in a mature but still evolving position. Earnings remain substantial, margins are resilient, and its expansion into RF front-end modules, automotive networking chips, and edge AI computing adds growth layers beyond wireless telecom. With consistent R&D allocation—23.1% of revenue in FY 2023 according to the 10-K—QCOM sustains product leadership across core and adjacent verticals.

Investor Sentiment Snapshot

• ASTS: Reddit forums and speculative growth investors on platforms like Seeking Alpha frame the stock as “the next Starlink for phones,” yet express caution due to dilution risks.
• QCOM: Viewed as a steady compounder among institutional investors and dividend portfolios. Bullish analysts cite its leading edge in global 5G infrastructure.

Strategic Action: Observe Both, Position Based on Horizon

For those seeking short- to mid-term gains with lower volatility, QCOM delivers predictable earnings and access to scalable 5G and automotive markets. Long-term growth seekers willing to accept development-stage volatility may prefer tracking ASTS milestones closely. Either way, monitoring ASTS’s commercial launches and QCOM’s response to new chipset entrants (such as Apple’s in-house modem) will offer key inflection points.

Look beyond share price, and evaluate each company through your own lens of risk tolerance and time horizon. Sector disruption and technology convergence never follow a straight line, but in this comparison, the spectrum stretches from stabilized cash machine to speculative space telecom breakout.