Bernstein said in a client note on Friday that Starship is the single most important factor in whether SpaceX can justify its valuation. The report also identified three other issues the company must address: semiconductor availability, regulatory processes, and computing capacity. According to the note, SpaceX needs a large number of processors for data center satellites as it works to build orbital data centers, while every Starship launch requires approval from the Federal Aviation Administration, or FAA. The analysts also pointed to the company’s push to become a leader in AI after its merger with Elon Musk’s xAI in February this year, a move that increases the need to keep building compute capacity despite broader resource constraints. Even with those hurdles, Bernstein maintained a buy rating on the stock and set a $239 price target ahead of earnings due on Tuesday. The analysts wrote that quarterly results are not the main issue. What matters, they said, is the level of confidence management shows in the company’s path for growth.
Bernstein said in a client report on Friday that Starship is the most important element in SpaceX’s case for justifying its valuation.
The report also listed three other key issues the company needs to solve: semiconductor availability, regulatory processes, and computing capacity.
According to the note, SpaceX will need a large number of processors for its data center satellites as it works to build orbital data centers. Each Starship launch also requires approval from the Federal Aviation Administration (FAA).
Bernstein added that after the company merged with Elon Musk’s xAI in February this year, it has been trying to become a leader in AI. That effort requires it to keep building computing capacity even as resources remain constrained.
Even so, Bernstein’s analysts kept a buy rating on the stock and set a $239 price target ahead of Tuesday’s earnings release.
“We think the quarterly print does not matter,” the analysts wrote. “What matters is the level of confidence management shows around the company’s growth path.”
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