SpaceX vs AST SpaceMobile: Which Stock Should You Invest In? We Answer Your Questions

Hello and welcome to being exponential. Today we're answering questions. >> All right, Luke, let's uh dive right in. Make these rapid fire quickly. So the first question we got was more of a statement where someone was saying AST is technically better than SpaceX when it comes to technology. Love to get your read on A versus SpaceX. >> Yeah, I'm I'm reading that comment right now. I mean, insightful comment and I don't really think anything they're saying is wrong. I think as Space Mobile is absolutely ahead of SpaceX in terms of technological capability and commercial development as it relates to their directto cell service. Uh but it's Elon Musk on the other side of that battle, >> right? >> And Elon Musk was also behind or so they said behind on electric vehicles for a while. He was also behind on a lot of different things on a lot of different ventures and came out ahead. So, I just think you have to understand that [snorts] don't bet against Elon. Um, AST is great, but this is such an early industry that a lot can change as the industry evolves into, you know, a real mature commercially scalable business of, you know, direct to sell ubiquity. uh I do think as succeeds there but in that long journey towards commercial viability a lot of money and a lot of resources are going to be required to build the best thing SpaceX is very well capitalized after this IPO so that's why I would not bet against SpaceX in competing at least competing with A in this space I do think there's there's room or space for more than one person company to succeed here and that's why we like both ASG space mobile and SpaceX side by side early industry lot of growth potential one is technologically ahead the other has a really great track record and a ton of resources and also has a technology so it's like why not bet on both >> both I like both horses in this race so I don't disagree with the comment I just think that it maybe undervalues what SpaceX brings to the table principally the amount of resources they bring to the table which is going to matter a lot when we're talking about launching take satellites into space, which is not exactly a cheap thing to do. So, >> 100%. Yeah. Realistically, you'd like to have Nvidia and AMD versus only picking, >> right? Exactly. Right. Yeah. Why go all in on Nvidia, right? Go Nvidia and AMD. And maybe all you people go back test it. If I went all in on Nvidia, I would have made more money. Yes. But it's risky to go all in on one in the early stages of a massive growth story. You want to you want to take multiple shots on gold. >> 100%. So, next question. A subscriber was concerned about Corning GLW. They think it is overvalued by 22%. What's your take on Corning? >> Uh, I love Corning. I mean, the last time we recommended it, I think we had Louis on the podcast and we asked for our favorite stock at that time, AI stock, I think a semiconductor stock, and I said Corning. It just got hit on a really strong earnings report. It dropped to like, you know, 10, 115, I think. And LA, I mean, let's see where it is right now. I mean, it bounced very strongly from that. And now we're up to 152. We got to a high of what was it recently? We got to, you know, 170. So that was a really good bounce back from earnings. I I I love the setup here on Corning. I mean, optics is I think that's one of the best trades. We just heard from Lummentum and Coherent and Corning and Applied Opto Electronics. Like all the players in the optics space and the read through was unequivocally bullish. Like the 800G to 1.6 C transition is happening. There's just multiple growth stories that are overlapping uh growth vectors rather that are overlapping for optics plays right now. And when I look at the charts for optics stocks, whether it's GLW or AOI or uh light LIT, they all look very similar. These are stocks that were redhot, got hit by that selloff, found support, nice bounce off of major support levels and and now the rebound is continuing. So I like GLW here. I also like all the other optics plays here. I think the optics trade is a really good trade for the second half of the year. >> Excellent. Next question here is a subscriber mentioned they got burned by AVGO Broadcom, right? So they were wondering what is your take on sectorbased ETFs, DRAM. Uh >> yeah, I mean I I like the sector ETFs and you're going to get burned by DRRAM. If if Broadcom's burning you, DRRAM's going to burn you, right? Because DRRAM is it's a memory ETF >> and the memory stocks are the most volatile of the group, right? Look at Sandis. That thing went from 200 to 2,000 to 1,000 to 1,800 in a matter of a year, right? I mean, that's the most volatile out there. Micron's been super volatile. Western Digital is volatile. Seagate's volatile. So, in the memory complex, you have the most volatile name. So, obviously, DRAM is going to be that's the memory ETF is going to be a very volatile ETF. Uh if you want to play it play the AI trade through a lower volatility ETF, the way to do it is just SMH and SOX. Those are the two big semiconductor ETFs. Socks is a little bit more volatile than SMH. I think the ratio is about 1.5 to one. Like if SMH goes up 1%, socks typically goes up about one and a half. If SMH goes down one, socks typically goes down about one and a half. That's tends to be the relationship. Uh so if you really want the lowest volatility way to still get high quality exposure to the AI infrastructure trade and buildout through an ETF, SMH is probably the way to do that. So that's what I would as opposed to going sector level with DRRAM or like an optics ETF or something like that. I don't even know if there is an optics ETF, but um I would instead just if either do individual stocks or go don't don't do in between, right? So get the individual stocks or if you don't want to do that, just do SMH and just chill with that. Like I think that's that's a very viable and good strategy. >> Excellent. Uh next question simply what about Iran? >> So I I like Neoclouds. Like I think Neoclouds I think we we heard from Core Wee, we heard from Applied Digital, we heard from the group, we heard from Nebius. Uh all really great stuff. Uh I just think that there is a there's a ranking here of Neoclouds. And while I think that it's going to be a rising tide lifts all boat situation over the next 12 months, I have my favorite boats and I have my least favorite boats. And frankly, when I look at Irene's growth profile and operating history, I'm not a huge fan of like the Bitcoin miner turned NeoCloud thing. Like I just it makes sense. I get why they're doing it, but it just also tells me that there's not a lot of operating experience with like the AI compute side of things. Like we're just kind of shifting and chasing the hottest hottest trend. And I I think it's a smart shift. smart pivot, but it doesn't really rank high in my books in terms of like quality exposure and and also with the growth rates that I run, I think they're a little bit lower than they are some of the other Neoclouds that I like better. And so if I were ranking the Neoclouds, um if we take, you know, the main four that people talk about, Nebius, Cororeweave, APLD, and I would go in that order. >> Yeah, >> Nebius is my favorite. Highest growth, most firepower there. I think the highest quality business. Core weeds number two also a lot of growth but a lot of leverage a lot of debt so some risk there good growth still some leverage problems but I really like the numbers they just reported were fantastic and then I to me is just I mean I still think it's good but it's the weakest of the bunch that's just kind of my my two cents there so that's my that's why we haven't really talked a lot about IN here but I'm still a fan like I still like the whole space and so I think it's still a good stock >> excellent and then last question here uh essentially This subscriber was curious about Qualcomm. We've mentioned in the past yeah >> it is the almost the the golden child when it comes to the potential for the physical AI play. So, what is your current take on Qualcomm? >> Yeah, Qualcomm, it's been fits and starts, right? It was, you know, it went nowhere and then it had that spike up to 250 and then it came back down. Now, I think it's stabilizing. >> I think it's right around 150, right? Let me pull up the the chart right now. Yeah, it's 160. Yeah. So, we're stabilizing right around 160ish. Yeah. Listen, I love Qualcomm. Like, maybe I'm wrong about it, but I'll die on that hill because So, the thing I like about Qualcomm is you have a one-two punch. The first punch is comes now and the second punch comes later. And the first punch is we're entering the data center market. So, now they're finally launching chips for data center. So, now they're in the Nvidia game, now they're in the AMD game, now they're in the Intel game. And I think that that's just not priced into the stock at all. Right. >> So, I do think that there is room for massive shortterm earnings growth above consensus, above estimates, above expectations coupled with that driving multiple expansion of the stock because it's pretty cheap on a multiple basis. So, I think the multiple expands and goes up and I think earnings go up and I think you get that nice combo in the short term. And then in the long term, I'm a huge believer in physical AI. You know this, I really believe in I don't know if the form factor is going to be glasses. I don't know if it's going to be necklaces. I don't know if it's going to be donuts. the little silly thing that OpenAI is making. Um, I don't know what it's going to be, but I do think there's going to be a new form factor and Qualcomm is just very well positioned with their Snapdragon processor to be the processing brain of whatever device that is right right now. All of these kind of side projects that the big tech boys are uh are working on, nine out of 10 of them are powered by Qualcomm Snapdragon. And so, yes, those nine out of 10 projects are not yielding meaningful revenue results for Qualcomm right now, but one of them is going to be the next iPhone. And when that happens, 90% chance it's built on Qualcomm Snapdragon processor, which means Qualcomm's going to have, you know, what the iPhone did for Qualcomm stock from 2007 2019 is what this next device could do for it from 2026, 2027 to, you know, 2035 plus. So, I am a huge believer in Qualcomm, both short-term and long term. I do love that stock despite the fact that it's been a lagard relative to the other stocks we like. >> A sleeping dragon if you will. >> Sure. I like that. >> Cool. All right, that's a great place to end it. Thank you for watching our questions episode. We'll be back next Tuesday. Please make sure to like, comment, subscribe, ask those questions. We will be answering them. Take care. >> [music] [music]