On Sept. 30, aerospace tech company Redwire (NYSE:RDW) announced a partnership with Sophia Space to develop infrastructure for orbital data center satellites. Just months earlier, artificial intelligence (AI) lab Anthropic had disclosed its interest in working with Space Exploration Technologies to put multiple gigawatts of computing capacity into orbit.
For Redwire, the timing couldn’t be much better. The stock, recently trading around $8 per share, offers investors exposure to a potentially enormous new market. But whether it’s actually a good bargain will depend on how quickly orbital computing becomes commercially viable.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Redwire has the technology orbital data centers need
Under its agreement with Sophia Space, Redwire will explore developing scalable computing infrastructure using Sophia’s modular TILE architecture. This technology combines computing hardware, solar power, and thermal management systems designed to operate in space. These are essential components of data center satellites, which would use freely available solar energy to power their computing systems.
Image source: Getty Images.
The companies plan to pursue government and commercial opportunities, too. This would potentially include projects involving the U.S. military.
Anthropic is thinking much bigger
In May, Anthropic announced an agreement to lease more than 300 megawatts of computing capacity at SpaceX’s Colossus 1 data center in Tennessee. It also expressed interest in partnering with SpaceX to develop multiple gigawatts of orbital AI computing capacity.
To be sure, building that much compute capacity and placing it in orbit would require enormous investments in solar arrays, spacecraft, rocket fuel, power distribution, and cooling equipment. But it’s worth noting that Redwire already manufactures several of the key technologies needed, putting it in a position to benefit if orbital computing takes off.
Redwire’s latest financial results were a mixed bag
In the third quarter, Redwire’s revenue increased 5.4% year over year to $109 million. Its backlog reached a record $619.7 million, up nearly 75%, while its gross margin improved from 16.3% to 32.3%. Management also reaffirmed its full-year revenue forecast range of $450 million to $500 million.
Of course, Redwire also reported a quarterly net loss of $23.2 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of negative $5.3 million. Given the company’s market capitalization of approximately $2 billion, the stock trades around 4.6 times trailing revenue. That’s hardly an obvious bargain valuation for an unprofitable company.
Is Redwire worth buying?
Orbital computing faces substantial obstacles, including launch costs, protecting delicate hardware from radiation exposure, communications bandwidth limitations, the difficulty of cooling servers efficiently in a vacuum, and an inability to easily maintain or update satellites’ hardware. Indeed, large-scale commercial deployments of cost-effective data center satellites could take years.
Redwire also faces competition from other space infrastructure suppliers, including companies that could develop their own systems. Nevertheless, it does have an advantage over companies entering the market without established aerospace operations. Redwire already supplies a variety of types of hardware used in space, has existing government and commercial customers, and possesses technologies applicable to orbital computing.
With all that in mind, the company offers speculative exposure to this emerging industry. But its low share price doesn’t automatically mean the stock is cheap.
I consider Redwire an interesting long-term space infrastructure investment rather than a proven orbital data center winner. Its upside could be substantial if the market develops, but don’t assume those future contracts are guaranteed.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again
In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. If you’d invested $5,000 then, you’d be sitting on $2,195,396 today.*
Now, for the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.
Continue »
*Stock Advisor returns as of November 12, 2026.
Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Space Exploration Technologies. The Motley Fool has a disclosure policy.
