How CoreWeave’s $8.7 Billion HPC Deal Will Impact Core Scientific (CORZ) Investors

• CoreWeave recently announced a major high-performance computing (HPC) contract with Core Scientific, providing a potential US$8.7 billion in revenue over a 12-year period and prompting Core Scientific to shift resources into expanding its HPC infrastructure.
• This agreement highlights Core Scientific’s significant transition away from Bitcoin mining and reinforces its position in the rapidly expanding data center sector.
• We'll examine what this long-term CoreWeave contract could mean for Core Scientific's growth strategy and future financial profile.

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Core Scientific Investment Narrative Recap

To be a shareholder in Core Scientific today, you need to believe in the transformation from Bitcoin mining to high-performance computing (HPC) services as a durable value driver. The recent CoreWeave contract gives the company a significant multi-year revenue opportunity, but the most immediate catalyst, successful deployment of new HPC capacity, remains tightly linked to timely infrastructure expansion. The greatest near-term risk continues to center on execution: if buildouts are delayed, or the full contract ramp is slower than expected, near-term revenues could still fall short.

The company’s announcement in February 2025 of a new HPC facility in Auburn, Alabama, is particularly relevant in light of the CoreWeave deal, as it directly supports this accelerated shift into data center services. Expansion projects like these are critical to unlocking the contract’s growth potential and addressing concerns around capacity bottlenecks, which could otherwise stall revenue gains from new service agreements.

In contrast, while large contracts look promising, investors should really be aware of what could happen if demand from a single major client suddenly changes direction...

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

Core Scientific's narrative projects $1.5 billion in revenue and $334.4 million in earnings by 2028. This requires 60.9% annual revenue growth and an earnings increase of $929.6 million from the current earnings of -$595.2 million.

Uncover how Core Scientific's forecasts yield a $19.95 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Three Community members on Simply Wall St estimate Core Scientific’s fair value between US$19.50 and US$23.00 per share. While this optimism reflects the promise of HPC growth, execution risk around facility buildouts could influence whether such targets are met, so you’ll want to consider other viewpoints that capture this range of expectations.

Explore 3 other fair value estimates on Core Scientific - why the stock might be worth just $19.50!

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 3 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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