Core Scientific (CORZ) Is Down 11.9% After Major AI Pivot And CoreWeave Deal - Has The Bull Case Changed?

• In recent months, Core Scientific has accelerated its move away from pure bitcoin mining toward AI and high‑performance compute infrastructure, underpinned by a long-term CoreWeave contract reportedly worth more than US$10.00 billion over 12 years.
• This pivot has coincided with DSC Meridian Capital adding roughly 1.4 million shares, about US$25.40 million, and an unusually high volume of options activity, highlighting growing institutional and derivatives-market interest in Core Scientific’s AI-focused direction.
• With that backdrop, we’ll now explore how this AI infrastructure push and CoreWeave contract reshape Core Scientific’s existing investment narrative.

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Core Scientific Investment Narrative Recap

To own Core Scientific today, you need to believe its transition from Bitcoin mining to AI and high performance computing can offset shrinking digital asset revenue and persistent losses. The CoreWeave contract and rising institutional and options interest reinforce the AI thesis, but they do not remove the near term risks around concentration in a single major customer and the company’s still fragile balance sheet.

The expanded CoreWeave agreement, now reportedly worth more than US$10.00 billion over 12 years, is the clearest link between this news and the current investment story. It sits at the center of Core Scientific’s colocation and AI infrastructure push, making execution on this contract and the timely build out of new HPC capacity key catalysts that could either validate or undermine the shift away from pure Bitcoin exposure.

Yet against that promise, the heavy reliance on CoreWeave for future revenue is a concentration risk investors should be aware of, especially if...

Read the full narrative on Core Scientific (it's free!)

Core Scientific's narrative projects $1.5 billion revenue and $334.4 million earnings by 2028. This requires 60.9% yearly revenue growth and a $929.6 million earnings increase from -$595.2 million today.

Uncover how Core Scientific's forecasts yield a $26.82 fair value, a 84% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently place Core Scientific’s fair value between US$23.00 and US$26.82 per share, underlining how far views can diverge. Set against that, the company’s dependence on a single large HPC customer raises important questions about how resilient those projections really are if conditions change, so it can be useful to compare several of these viewpoints before deciding how you see the stock.

Explore 4 other fair value estimates on Core Scientific - why the stock might be worth as much as 84% more than the current price!

Build Your Own Core Scientific Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Core Scientific research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Core Scientific research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Core Scientific's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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