AST SpaceMobile Inc. (ticker: ASTS) surged to a record closing price of $12.87 on January 16, 2026, following reports it is advancing toward securing a portion of the U.S. Department of Defense’s $151 billion Next-Generation Satellite Communications (NGSC) initiative. The milestone underscores growing investor confidence in the company’s disruptive satellite-to-cellular technology.
- AST SpaceMobile (ASTS) reached a record closing price of $12.87 on January 16, 2026.
- The company is in advanced talks for a share of the $151 billion U.S. Department of Defense NGSC program.
- Potential contract value: up to $1.2 billion over five years, with performance-based options.
- AST SpaceMobile’s direct-to-cell technology has passed key live testing with AT&T and T-Mobile.
- Fleet expansion could increase from 12 to 24 satellites by 2028 if awarded.
- Phase one NGSC awards expected in late 2026, influencing near-term investor sentiment.
AST SpaceMobile stock climbed 18.3% on January 16, 2026, reaching a new all-time high as the company nears a potential contract award under the Pentagon’s $151 billion NGSC program. The initiative aims to modernize military communications by deploying advanced satellite networks capable of delivering secure, high-bandwidth connectivity to warfighters in remote and contested environments. AST SpaceMobile is one of several private-sector firms vying for a share of the multi-phase program, which includes both commercial and government-owned assets. The company’s unique approach—leveraging low Earth orbit (LEO) satellites to directly connect with standard mobile handsets without requiring special equipment—positions it as a key contender. Federal sources indicate AST SpaceMobile has completed critical technology demonstrations, including live voice and data transmission tests with commercial carriers. These trials, conducted in partnership with AT&T and T-Mobile, confirmed the feasibility of direct-to-cell service via satellites, a capability central to the NGSC’s objectives. If awarded, AST SpaceMobile could receive up to $1.2 billion in funding over five years, with the potential for additional contracts based on performance and program expansion. Analysts estimate the contract would accelerate the company’s satellite fleet deployment from 12 to 24 operational units by 2028. This would significantly bolster its global coverage and improve service reliability ahead of anticipated commercial launches in 2027. The rally in ASTS shares reflects broader market optimism about the commercialization of space-based communications. Investors are also monitoring the U.S. Defense Advanced Research Projects Agency (DARPA) and the Space Force’s involvement, which may provide long-term stability and recurring revenue streams. With the NGSC program expected to begin phase one awards later in 2026, the next few months will be critical for AST SpaceMobile’s growth trajectory.