AST SpaceMobile, Serve Robotics and Lumen have great development potential.
Many cryptocurrencies have rallied over the past year as expectations of lower rates pushed investors back into speculative investments. In addition, the exchange-traded funds (ETF) approvals of the first spot price for Bitcoin and Ether, pulsationsThe victory against the US Securities and Exchange Commission (SEC) and the Bitcoin halving in April have brought more bulls back into this segment of the market.
It may be tempting to jump back on the crypto bandwagon, but investors should realize that these tokens are still largely trading on market noise rather than sustainable long-term strengths. Instead of making big bets on the volatile crypto market, it might be wiser to invest that money in a few high-risk, high-payoff plays in the tech sector.
I believe that these three tech stocks — AST SpaceMobile (ASTS -3.75%), Serve robotics (SERV 0.94%)and Lumen Technologies (LUMN 3.15%) — have the potential to generate more profits than any cryptocurrency in the next few years. Let’s find out a little more about these stocks.
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1. AST SpaceMobile
AST SpaceMobile develops Low Earth Orbit (LEO) satellites for cellular communications. Unlike SpaceX’s Starlink, which provides mid-range coverage via mid-range frequencies, AST’s satellites provide lower-frequency links that can be directly accessed by everyday 2G, 4G and 5G smartphones over wider regions.
AST SpaceMobile was founded seven years ago and went public through a merger with a special purpose acquisition company (SPAC) in 2021. It launched its first prototype BlueWalker 3 satellite for 4G and 5G connections in September 2022 and secured agreements for cellular broadband access with AT&T and Verizon Communications this May.
AST has a market cap of $5.2 billion, but has yet to generate significant revenue. That’s because investors expect its revenue to soar after it successfully launches its first commercial satellites. It is scheduled to launch its first five commercial Block 1 BlueBird (BB) satellites next month – and the outcome of that event will either boost or crush its expensive stock.
If AST successfully launches its satellites and expands its network, analysts expect its revenue to grow from just $4.3 million this year to $691.7 million in 2026. If that happens, it could generate huge multi-bag profits over the next few years.
2. Serve robotics
Serve Robotics develops autonomous robots for curbside delivery. It started as a Postmates unit that was later acquired by Uber Technologies in 2020 Uber spun off Serve Robotics in 2021 and the newly independent company went public via a reverse merger (similar to a SPAC acquisition) with a blank check company in 2023.
Serve Robotics is still a small company that only operates a fleet of about 100 robots, and only 48 of those robots were active on a daily basis in the second quarter of 2024. Uber Eats is Serve’s main customer, and the food delivery giant plans to deploy up to 2,000 of its robots in the US by 2025
The bulls believe the massive expansion will boost Serve’s revenue and attract the attention of other companies. That’s why analysts expect its revenue to grow from just $1.6 million this year to $60 million in 2026. With a market cap of $441 million, Serve is already trading at 7 times its projected 2026 sales — and this suggests that he can scale up his fledgling business. however Nvidia – which holds a 10% stake – still appears bullish on its long-term growth potential.
3. Lumen Technologies
Lumen, the telecommunications company formerly known as CenturyLink, saw its stock plummet below $1 this June. At the time, many investors thought it was destined for bankruptcy as its big bets to expand its cable network business backfired.
Unlike AT&T and Verizon, which have expanded their wireless businesses and scaled back their cable businesses, Lumen has avoided the wireless market and doubled down on expanding its residential and business cable networks. Unfortunately, the growth of its fiber optic business could not offset the secular decline of its legacy cable network business.
As a result, Lumen’s revenue fell 11% in 2022 and fell another 17% in 2023. The company racked up big losses in both years and suspended its dividend in November 2022. But in the past two months, Lumen’s stock has soared sharply by more than 450%.
The main catalyst was Lumen’s new deal with Microsoft Azure, the world’s second largest cloud platform, will upgrade its data centers with new networking and optical equipment. Lumen also struck a deal with Corning to ensure a stable supply of fiber optic cables to support this huge new partnership.
Analysts still expect Lumen’s revenue to decline over the next three years, but bulls believe the Microsoft deal will stabilize the core business. Lumen’s stock still trades at less than 2 times this year’s sales right now, so it could jump much higher if it takes advantage of its new partnership with Microsoft to expand its AI-focused data centers business. data.
Leo Sun holds positions in AT&T. The Motley Fool has positions and recommends Bitcoin, Ethereum, Microsoft, Nvidia, Uber Technologies and XRP. The Motley Fool recommends Corning and Verizon Communications and recommends the following options: Microsoft January 2026 $395 long calls and Microsoft January 2026 $405 short calls. The Motley Fool has a disclosure policy.