Iridium Communications Inc. IRDM has joined forces with Nordic Semiconductor to incorporate its Non-Terrestrial Networks (NTN) Direct service into Nordic's LTE-M/Narrowband Internet of Things (NB-IoT) modules and chipsets. This initiative aims to realize the vision of universal connectivity for global and extensive IoT applications. 

Recently, Iridium announced that the 3rd Generation Partnership Project (3GPP) has approved its request to enhance the capabilities of NB-IoT for NTN as part of the official Work Plan for 3GPP Release 19. Iridium NTN Direct was conceived from the company’s innovative Project Stardust, launched in January 2024. This initiative augments Iridium’s footprint in global connectivity through its latest service, Iridium NTN Direct, which is expected to be the world's first global 5G NB-IoT service. As a result of these enhancements, Iridium's satellite service will be accessible to any device equipped with a 3GPP Release 19 compliant chipset, with the completion of this release anticipated by the end of 2025.

Nordic Semiconductor is a leading provider of low-power wireless connectivity solutions, including cellular IoT technologies like LTE-M, NB-IoT, Wi-Fi, Bluetooth LE and Thread. The company plans to integrate Iridium's recognized NTN Direct service into its 3GPP Release 19 NTN roadmap. By facilitating connections for low-cost, 3GPP-standard NB-IoT modules and chipsets, like Nordic's nRF9151, Iridium is contributing to the realization of universal connectivity for a wide-ranging IoT ecosystem, highlighted Nordic.

Iridium Aims to Gain From Expanding Satellite IoT Market

The Satellite IoT market is projected to witness a compound annual growth rate (CAGR) of 18.2% from 2024 to 2031, reaching an impressive market volume of $2.48 billion by 2031, according to Meticulous Research.

Commercial services remain the largest segment of Iridium’s business, accounting for 62.6% of second-quarter revenues, which totaled $126 million — a 6% increase from the previous year. This growth is driven by the increasing demand for IoT data, voice and data services across various sectors, including maritime, aviation, oil and gas, mining, recreation, forestry, construction, transportation and emergency services.

Iridium Communications Inc Price and Consensus

Iridium Communications Inc price-consensus-chart | Iridium Communications Inc Quote

In the second quarter, commercial IoT revenues reached $41.6 million, representing a 20% year-over-year increase. This growth was supported by a 16% rise in subscribers, bringing the total to 1,837,000. The collaboration with Nordic Semiconductor is set to enhance connectivity in the IoT space, positioning Iridium to benefit from rising IoT demand and driving stock upward.

IRDM’s Zacks Rank & Stock Price Performance

IRDM currently carries a Zacks Rank #2 (Buy). Shares of the company have lost 30% in the past year against the sub-industry's growth of 2.2%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Seagate Technology Holdings plc STX, Cirrus Logic, Inc. CRUS and SS&C Technologies Holdings, Inc. SSNC.  STX & CRUS presently sport a Zacks Rank #1 (Strong Buy), whereas SSNC carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Seagate Technology delivered an earnings surprise of 80.9%, on average, in three of the trailing four quarters. Strength in mass capacity solutions owing to stronger nearline cloud demand is aiding Seagate. Its launch of Mozaic 3+ hard drive platform positions it well to harness the power of megatrends like AI and machine learning, likely boosting demand over the long term.

Cirrus Logic’s performance is driven by increasing shipments in the smartphone market. Steady momentum in the laptop market and standout next-generation flagship smartphone design cushion the top line. CRUS delivered an earnings surprise of 56.6%, on average, in the trailing four quarters.

SS&C Technologies Holdings delivers investment and financial management software and related services focused exclusively on the financial services industry. It delivered an earnings surprise of 3.1%, on average, in the trailing four quarters. In the last reported quarter, SSNC pulled off an earnings surprise of 4.9%.

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