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Can Viasat (VSAT)’s Strategic Split Unlock Higher Valuation? JPMorgan Believes So

Viasat Inc. (NASDAQ:VSAT) is among the hottest SMID-cap stocks so far in 2025. On November 11, JPMorgan analyst Sebastiano Petti more than doubled his price target on Viasat Inc. (NASDAQ:VSAT) to $50 from $23 and upgraded his rating from Neutral to Overweight, according to TheFly.

Petti pointed to the company’s recent shareholder letter, which gave him more confidence in a potential strategic separation of ViaSat’s Defense and Advanced Technologies division. According to his latest research note, Viasat Inc. (NASDAQ:VSAT) appears to be actively exploring options to unlock shareholder value. However, the timing of such a move may be deferred by a few quarters as the company evaluates its options.

The analyst based his price target revision on a sum-of-the-parts valuation, which suggests that the individual components of ViaSat’s business may be worth more separately than as a whole. While Petti does not anticipate any immediate monetization of ViaSat’s spectrum assets, he believes they hold long-term value.

It should be noted that activist investor Carronade Capital Management had also suggested that Viasat Inc. (NASDAQ:VSAT) split its defence business in the first week of August this year, amid the company’s strategic review. In addition, the company announced its Q2 results the same week, and both pieces of news led to a 50% rally. Since then, the stock has risen 100%.

Overall, Viasat Inc. (NASDAQ:VSAT) stock is up an impressive 258% year to date (as of November 20), driven by strong results and further supported by deal announcements and joint ventures.

Viasat Inc. (NASDAQ:VSAT) is a global communications company that provides high-speed satellite broadband services and secure networking solutions. They serve commercial, government, and military customers worldwide, offering satellite internet, in-flight connectivity, and secure communication solutions.

While we acknowledge the risk and potential of VSAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VSAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Most Fantastic Stocks Every Investor Should Pay Attention To and 13 Best Stocks to Buy According to Citadel LLC.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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