The #1 Space Stock in 2026

Over the past two years, investors have focused almost entirely on artificial intelligence (AI) – what I like to call “advanced intelligence”!

They’ve watched Nvidia, data center builders, and cloud platforms surge as demand for computing power has accelerated far beyond expectations.

But beneath that boom, a second layer of infrastructure is starting to form – one most investors don’t fully understand.

It isn’t being built in Silicon Valley. It’s not even being built on Earth.

It’s being built in orbit.

The next phase of the AI economy is not just about processing power. It’s about distribution – how that intelligence reaches users, machines, and systems around the world in real time.

And more and more, the answer is space.

More than 10,000 satellites are now in orbit, many launched in just the past few years.

Most of that growth has been driven by one force: the rapid rise of private space infrastructure, led by SpaceX.

But what comes next is even bigger.

The next phase is not about thousands of satellites. It’s about hundreds of thousands… maybe even millions.

To see why this matters, start with one simple limit: energy.

Why AI Is Moving Beyond the Data Center

Modern AI systems use huge amounts of power.

Large data centers now use as much electricity as small cities. Cooling alone takes up a large share of costs. And as models grow more complex, those demands keep rising.

This creates a bottleneck. The more AI grows, the more it strains Earth-based systems.

That’s where space starts to make sense.

In orbit, solar energy is constant and abundant. There’s no weather, no atmosphere, and fewer cooling limits. Once systems are in place, costs can fall compared with Earth-based setups.

That’s why major research groups – and now private companies – are exploring space-based data processing.

Not as a replacement for data centers…

But as a second layer that removes key limits.

At the same time, satellite networks are becoming the most efficient way to move data worldwide.

They remove geographic limits. They cut delays in underserved areas. And they create an always-on network that connects everything – from self-driving cars to factory robots to remote medical systems.

Put simply, space is becoming part of the AI economy.

And as with every major shift before it, the real opportunity is not in the headline names – but in the suppliers behind them.

The Pattern Investors Tend to Miss

History gives us a clear pattern.

When a new technology appears, the most visible companies get the headlines – and much of the early capital.

But the more consistent long-term winners are often deeper in the supply chain.

During the railroad boom, it wasn’t just rail operators that created wealth – it was steelmakers and equipment suppliers.

During the internet boom, it wasn’t just websites – it was the firms building the networks.

And in early cloud computing, gains came not just from software but from the companies providing hardware and compute systems.

The same pattern is now playing out in space.

SpaceX has cut launch costs in a major way. Its reusable rockets and in-house manufacturing have pushed costs to a fraction of older systems. And Starship is poised to take those costs even lower, thanks to its full and rapid reusability, cheap, clean-burning liquid methane fuel, and mass-produced Raptor engines.

As launches increase and payloads grow, a second effect is taking hold: demand for space hardware is rising even faster.

That includes satellites, power systems, manufacturing platforms, research equipment, and AI-related systems.

This is where the opportunity becomes clearer.

Few companies can operate at this level. Even fewer have strong ties to both government and commercial space programs.

But Redwire Corp. (NYSE: RDW) sits right at that intersection.

A Company Built for the Next Phase of Space

Unlike many early-stage space firms, Redwire is not built on a single idea.

It is an integrated space infrastructure company with operations in the U.S. and Europe. It focuses on three key areas:

• Satellite systems and components
• Space-based manufacturing and research platforms
• Power and energy systems, including advanced solar arrays.

Each area ties directly to the next phase of space growth.

As more satellites launch, demand rises not just for rockets – but for the hardware itself.

As operations grow more complex, the need for in-orbit manufacturing increases.

And as systems scale, reliable power becomes a key limit.

Redwire addresses all three.

The company has worked with SpaceX on missions supporting the International Space Station.

It has delivered hardware for both commercial and government customers.

And it has a wide network of partners, including space agencies like NASA, Starlab, Honeywell Aerospace, Virgin Galactic, and the European Space Agency, as well as defense organizations like the U.S. Army, Red Cat, and Belgian Defense.

The Emerging Frontier: Medical Research and Biotech in Space

One of the most overlooked parts of space infrastructure is its role in medical research.

Microgravity creates conditions that cannot be matched on Earth. In space, biological processes behave differently: Proteins crystallize more uniformly, cells grow in three dimensions, and disease mechanisms can be studied with far greater clarity.

This has major value for drug development, regenerative medicine, and advanced treatments.

Redwire is at the center of this emerging field. It has flown hundreds of experiments on the Space Shuttle and the International Space Station (ISS). As of the end of 2025, it had 11 research and manufacturing facilities on the ISS – more than any other company.

In August 2025, it launched SpaceMD, a subsidiary dedicated to using Redwire’s technology to commercialize pharmaceutical research in microgravity. It is effectively turning orbit into a next-generation research lab.

Redwire has already worked with partners like Bristol Myers Squibb, Eli Lilly, and Butler University on projects aimed at improving treatments for heart disease, obesity, and diabetes.

In simple terms, this research could speed up new treatments that are hard to develop on Earth.

And this is not just theory. Governments, universities, and drug companies are already investing in this work.

As commercial space stations launch later this decade, demand is likely to rise.

That puts Redwire in a strong position – not just in space, but in the future of healthcare.

Why Power May Be the Most Overlooked Advantage

Every system in space depends on reliable power.

As payloads grow more advanced – particularly those tied to AI workloads – power needs increase.

Redwire has focused heavily on this area.

Its latest solar arrays produce more power while taking up less mass and volume.

That matters. In orbit, every kilogram and every inch counts.

Better efficiency means more capability per launch.

It also lowers long-term limits and improves system performance.

This will matter even more if space-based computing grows. Those systems will need both strong hardware and reliable energy.

That’s why Redwire’s solutions could become essential as space expands.

Indeed, the company’s financials already reflect growing demand.

Financial Progress That Reflects Real Demand

In the first quarter of 2026, Redwire recorded a gross profit of nearly $25.8 million, a 185% increase year over year. It also generated approximately $97 million in revenue, representing year-over-year growth of about 58%.

And while the company is not profitable at this time, that is typical of companies transitioning from early-stage development into scaled deployment.

On April 1, the company announced its advanced optical imaging and sun sensor technology will be included on NASA’s Artemis II mission, the first crewed flight of the Artemis program. The stock gained 10.1% on the news.

On April 3, Redwire rose 7% on the announcement of a deal with the European Space Agency. Given that context, this move indicates the market considers this news meaningful but not something that would fundamentally change the perception of the business.

These are big moves, but the stock remains a turnaround story, with shares trading well below their $26 high set earlier this year. And moves like this for Redwire’s stock are not atypical – Redwire’s shares are extremely volatile.

The company is not yet mature. But it is also not speculative in the traditional sense.

It is generating revenue, with estimates indicating ongoing growth of about 23.1% per year.

It is expanding its customer base, with a backlog of $498 million at the end of the first quarter of 2026 (a 21% increase over the previous quarter).

And it is participating directly in a sector that is growing exponentially.

Plus, in addition to organic growth, Redwire is expanding its capabilities through acquisition.

Its recent move to acquire Edge Autonomy adds a complementary layer to its business – bringing expertise in uncrewed aerial systems, advanced sensors, and autonomous technologies.

While these capabilities are deployed primarily in defense and intelligence applications today, they overlap meaningfully with Redwire’s space infrastructure ambitions.

The combination broadens Redwire’s position from a component supplier to a more integrated systems provider, with exposure to both terrestrial and orbital data networks.

Over time, this could open new contract opportunities, deepen government relationships, and create additional pathways for growth beyond traditional space hardware.

Why the Timing Is Becoming More Important

Forgive the pun, but the stars are aligned here when it comes to Redwire’s potential.

Thanks to SpaceX’s game-changing innovations – particularly the first-of-its-kind Starship – the cost of launching payloads is decreasing.

Launch cadence is increasing.

And new classes of satellites – particularly those tied to communication, sensing, and distributed computing – are being deployed at scale.

These trends will have a domino effect.

Lower costs enable more launches. More launches enable more infrastructure. More infrastructure enables new applications. And new applications drive further demand.

This kind of feedback loop is what defines major technological expansions.

It is what drove the growth of the internet and the expansion of cloud computing.

And it is what appears to be forming in the space economy today.

Redwire is already embedded within that system.

The space economy is no longer a speculative frontier.

It is becoming a functional layer of global infrastructure.

At the same time, AI is placing new demands on how data is processed, distributed, and accessed.

Those two trends are beginning to converge.

And when they do, the companies that provide the underlying systems – satellites, power, and in-orbit capabilities – will play an increasingly important role.

With its existing contracts, established relationships, and a product portfolio aligned with the next phase of industry growth, Redwire is perfectly positioned to benefit.

Recommendation: Buy Redwire Corp. (NYSE: RDW) at market. While this should be considered a long-term position, some Members may prefer to use a 25% trailing stop to protect their principal and profits.