Bernstein: The Starship is the most essential element for SpaceX to prove its viability.

In a report given to clients on Friday, Bernstein stated that Starship is the most critical factor for SpaceX to prove the rationale behind its valuation. Additionally, the report outlined three other key issues the company needs to address: semiconductor availability, regulatory processes, and computing power. The report noted that as SpaceX works to build its orbital data centers, it needs to equip its data center satellites with a large number of processors, and each Starship launch must receive approval from the Federal Aviation Administration. Moreover, as the company seeks to become a leader in the AI field following its merger with Musk's xAI in February, it must continually build computing capacity in a resource-constrained environment. Nevertheless, Bernstein's analysts recommended buying the stock and set a target price of $239 ahead of Tuesday's earnings release. "We believe the quarterly performance does not matter," the analysts wrote. "What is important is the level of confidence management shows in the company's growth path."