SpaceX’s record-breaking US$75b IPO is not just a headline; it is a fresh shockwave through anything linked to space, satellites and advanced AI. A US$1.77t valuation, ongoing losses, heavy AI spend and Starlink as the only profitable unit together create a mix of excitement and questions that can spill over into related stocks. For you as an investor, that can mean shifting expectations, changing risk appetite and new stories catching market attention. This article highlights 3 stocks from our Space and Advanced AI Technology screener that are exposed to this news and may be positively affected by it.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Ouster (OUST)

Overview: Ouster produces digital lidar sensors, cameras and perception software that help vehicles, robots and smart infrastructure systems map and understand their surroundings in 3D for uses such as ADAS, autonomous driving, industrial automation and traffic management.

Operations: Ouster currently generates its US$185.33 million in revenue entirely from the sale of lidar sensor kits.

Market Cap: US$2.44b

Investors watching the SpaceX IPO story may find Ouster worth a closer look as a pick-and-shovel supplier to advanced robotics, autonomous vehicles and smart infrastructure. These are all areas that could benefit from rising interest in space and AI enabled systems. The company is expanding beyond hardware into software powered platforms like BlueCity and Gemini, positioning itself as a Physical AI provider for traffic management and industrial automation. At the same time, heavy competition, recent insider selling, share dilution and funding risk mean this is far from a one way bet, which is a key reason a deeper analysis matters.

Ouster’s expansion into Physical AI for robots and smart infrastructure could be the real story behind the headlines. However, the trade off between promise and funding risk is not obvious from the surface, so start with the 3 key rewards and 3 important warning signs

Ciena (CIEN)

Overview: Ciena builds the hardware, software and services that move massive amounts of data across global networks, supplying telecom operators, cloud providers and enterprises with the optical and routing gear that underpins AI data centers, subsea cables and long haul connectivity.

Operations: Ciena generates most of its revenue from Networking Platforms at US$4.41b, with additional contributions from Global Services at US$681.1m, Platform Software and Services at US$370.6m, and Blue Planet Automation Software and Services at US$105.3m.

Market Cap: US$61.53b

Ciena sits at the crossroads of the AI and space connectivity stories, supplying the high capacity optical and routing systems that AI data centers and satellite networks depend on. Revenue and earnings growth have recently outpaced the wider US market, net margins have improved to 7.9%, and a growing backlog plus multiple product wins across the US, Latin America, Europe and Asia indicate firm demand for its WaveLogic platforms. At the same time, a very high P/E, heavy use of external borrowing and reliance on a small group of large customers mean expectations are demanding and execution risk is significant. For investors, a key consideration is how much of this AI and SpaceX related enthusiasm is already reflected in the share price and how sustainable the current momentum may be.

Ciena’s AI fueled order book and global product wins suggest a compelling narrative, but a very high P/E and customer concentration raise tougher questions. Get the full picture in the 2 key rewards and 1 important warning sign

Electro Optic Systems Holdings (ASX:EOS)

Overview: Electro Optic Systems Holdings develops and sells advanced defense and space technology, including remote weapon systems, laser weapons, counter drone solutions and satellite communications, as well as telescopes, space tracking sensors and precision optics used by militaries and space agencies across multiple regions.

Operations: Electro Optic Systems Holdings generates most of its revenue from Defence at A$115.8 million, with a smaller contribution from Space at A$12.7 million, and sells across Europe (A$44.1 million), Australia/Asia (A$47.7 million), North America (A$26.0 million) and the Middle East, primarily the United Arab Emirates (A$10.7 million).

Market Cap: A$2.00b

Electro Optic Systems sits at the intersection of the new space race and rapidly evolving defense needs, with laser weapons, counter drone systems and space control tools that customers describe as essential space infrastructure. Analyst commentary highlights revenue and earnings growth potential, supported by customer funded development and new board appointments with defense and space expertise. At the same time, the company is loss making, carries funding risk and recently raised fresh equity, which may concern existing shareholders. For investors, a central consideration is whether the mix of high price expectations, volatile defense contracts and a history of disclosure issues is outweighed by its position in high demand segments that could attract renewed attention on commercial space infrastructure after SpaceX’s IPO.

EOS’s mix of laser weapons, counter drone tech and space infrastructure is attracting fresh attention, but the real story sits in the details of contracts, funding and execution risk, laid bare in the analysis report for Electro Optic Systems Holdings

The three stocks in this article are only a starting point. The full screen uncovers 19 more companies in the Space and Advanced AI Technology Sector screener that carry equally compelling space and AI linked narratives. Use Simply Wall St to identify, filter and analyze the specific catalysts, quality markers and risk factors that matter to you so you can focus on the highest conviction ideas in this theme.

Take Control of Your Investment Journey

If Ouster or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Before They Fly?

New themes can break out fast, and once the crowd catches on, the sharpest entry points are usually gone. Scan fresh ideas while it matters and get in early.

• Spot resilient compounders early by checking companies in the list of solid balance sheet and fundamentals (47 results), where strong cash positions and steady fundamentals help separate sturdier stocks from the rest.
• Follow income opportunities by tracking the 8 dividend fortresses, a curated set of higher-yield payers that focus on maintaining distributions while prices may still be under the radar.
• Explore the automation shift by reviewing the 33 robotics and automation stocks, highlighting companies tied to robots and factory upgrades before broader enthusiasm potentially changes valuations.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.