• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Did Single Chipset Satellite Access Just Shift Iridium's (IRDM) Investment Narrative?

    Simply Wall St·10/20/2026 08:25:26
    Listen to the news
    • In October 2026, Altair Semiconductor announced that it had integrated Iridium NTN Direct into its ALT1350 and ALT1550 IoT chipsets, combining terrestrial cellular and Iridium satellite connectivity on a single low power platform for uses such as asset tracking, logistics and AI enabled wearables.
    • This single chipset approach removes the need for a separate satellite modem, which can simplify device design, influence hardware cost structures and potentially broaden how often Iridium Communications' L band network is embedded in future IoT and direct to device products.
    • We will now see how Iridium Communications' investment narrative could be affected by this tighter NTN integration into Altair chipsets.

    Scan other satellite and IoT connectivity plays that are positioned for similar out of-coverage demand with our curated list of 42 power grid technology and infrastructure stocks

    Iridium Communications Investment Narrative Recap

    Iridium Communications appeals to shareholders who buy into a long term role for satellite as an embedded, behind the scenes utility for IoT, aviation, government and PNT services. The current story hinges on turning that installed space network, plus assured PNT and NTN Direct, into steadier service revenue rather than one off project wins.

    In the near term, the key swing factor is how quickly newer offerings offset flat to low single digit service revenue guidance and pressure from customers shifting to lower value maritime plans. The Altair chipset news helps the NTN Direct narrative, but by itself it does not resolve concerns around IoT usage depth or PNT timing.

    The most relevant prior thread is the push into standards based Iridium NTN Direct with roaming partnerships and a planned 3GPP Release 19 chipset path. Altair’s integration fits directly into that framework by making Iridium connectivity an option inside low power cellular IoT hardware rather than a separate module choice.

    For you as an investor, the real question is execution. Wider NTN enabled chipset availability may support catalysts tied to IoT and direct to device adoption, yet the earlier risks still apply. If traffic remains concentrated in a small group of applications, then expectations for EBITDA, free cash flow and the premium implied in the Rocket Lab deal remain harder to justify.

    What The Altair Deal Means Against Current Iridium Numbers

    Iridium Communications' narrative projects US$1.1b revenue and US$173.7m earnings by 2029. This corresponds to 7.8% yearly revenue growth and an earnings increase of about US$80m from US$93.3m today.

    Uncover why Iridium Communications' fair value indicates a 5% potential downside to its current price, leaving little room for error.

    NasdaqGS:IRDM 1-Year Stock Price Chart
    NasdaqGS:IRDM 1-Year Stock Price Chart

    Exploring Other Perspectives

    You are not alone if you think this Altair move could change the risk story. The most cautious analysts had Iridium Communications reaching about US$1.1b revenue and US$143.5m earnings by 2029, yet still argued for a US$36 price target. That gap shows how sharply opinions can diverge. Consider several angles before deciding what this news might mean.

    Explore 5 other Iridium Communications fair value estimates, including one that suggests as much as 19% downside from the current price.

    Form Your Own Verdict

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    Looking For More Investment Ideas Beyond Iridium Communications?

    Once you have formed a view on Iridium Communications, it can help to widen the lens and compare it with other opportunities that match your risk tolerance and portfolio goals. The Simply Wall St Screener is built for that kind of side by side work.