SpaceX is currently preparing its roadshow ahead of a record $2 trillion IPO. Consequently, stocks like Lumentum Holdings Inc. (LITE) are high momentum and still trending higher in a powerful manner. But traders have to decide how much of the talk about data centers in space is hype and what is likely to become reality, advises Eoin Treacy, editor of Fuller Treacy Money.
The gains are a trend that is heavily dependent on the success of the SpaceX IPO. There is a very real possibility stocks like LITE will rally into the IPO – and fall subsequently to at least unwind overbought conditions.
(Editor’s Note: Eoin will be speaking at the 2026 MoneyShow Masters Symposium Dallas, scheduled for May 14-16. Click HERE to register.)
Lumentum Holdings Inc. (LITE)
There is no question that the efficiency of solar panels is greatly enhanced when running in space. They get 24 hours of direct sunlight and the light is not filtered by the atmosphere. Chips would also benefit from running in the chilly vacuum of space while excess heat can be radiated like the International Space Station does today. But I think it is easy to make an argument that building data centers in space is inefficient.
