Is Institutional Buying And AI Colocation Growth Altering The Investment Case For Core Scientific (CORZ)?

• In recent months, asset manager VR Advisory Services accumulated over 1.2 million Core Scientific shares as the company reported stronger high-density colocation and AI infrastructure results alongside improved gross profit.
• This combination of institutional buying, analyst optimism and insider purchases highlights growing investor interest in Core Scientific’s shift away from volatile digital asset mining toward more data-center-like revenue streams.
• Next, we’ll examine how this institutional accumulation, alongside progress in high-density colocation and AI infrastructure, may influence Core Scientific’s investment narrative.

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Core Scientific Investment Narrative Recap

To own Core Scientific, you have to believe its pivot from Bitcoin mining to high-density colocation and AI infrastructure can offset shrinking digital asset revenue and past losses. Recent institutional buying and positive analyst sentiment support the idea that this transition is gaining traction, but they do not materially change the key near term catalyst, which is ramping new HPC contracts, or the biggest risk, which is executing that shift while still carrying balance sheet and concentration pressures.

The most relevant development here is Core Scientific’s reported growth in high-density colocation and AI infrastructure revenue, along with improved gross profit in recent results. This progress ties directly into the CoreWeave HPC contract and broader capacity expansions, which are central to the company’s plan to replace volatile mining income with more data center like revenue and to make better use of its strengthened, post restructuring capital position.

However, investors should also weigh how reliant this new direction is on a single large client and what happens if CoreWeave’s demand...

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 $27.65 fair value, a 62% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community value Core Scientific between US$23.00 and about US$27.65 per share, reflecting a fairly tight cluster of views. You can weigh those against the dependence on the CoreWeave contract as a key earnings driver and consider what a change in that relationship could mean for the business over time.

Explore 4 other fair value estimates on Core Scientific - why the stock might be worth just $23.00!

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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