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Tuesday, Core Scientific Inc . (NASDAQ:CORZ) shares maintained their Outperform rating with a steady price target of $17.00, as reiterated by SocGen Group’s Bernstein analysts. The firm’s stance comes amid Core Scientific’s recent performance, which has seen its stock rise approximately 70% in the last month, with InvestingPro data showing a precise 5.96% gain in the past week alone. This increase, however, is set against a backdrop of a 22.78% decline year-to-date, indicating a mixed sentiment among investors towards the company’s capital expenditures in artificial intelligence (AI). With analyst targets ranging from $15 to $23, the stock currently trades at $10.85, though technical indicators suggest overbought conditions.
The positive outlook by Bernstein is partly influenced by the performance of CoreWeave, which is not covered by the firm but has seen its value surge by 115% since its initial public offering. CoreWeave is a significant partner for Core Scientific, accounting for roughly 37% of its contracted power. The correlation between the two companies’ fortunes is observed as CoreWeave’s significant new orders, amounting to $15.9 billion from OpenAI, and Core Scientific’s robust delivery pipeline, which includes 250 megawatts (MW) expected by 2025, may bolster investor confidence. Core Scientific’s progress on its 260MW Denton site, dedicated to OpenAI, is also a contributing factor to the optimistic outlook. InvestingPro data reveals the company maintains a healthy current ratio of 4.26, indicating strong short-term liquidity to support its expansion plans.
Bernstein analysts highlight that Core Scientific is executing one of the largest Blackwell GB200 clusters in the United States, which further underlines its capabilities beyond its original Bitcoin mining operations. The firm’s analysts suggest that the market has yet to fully appreciate Core Scientific’s transition towards being a cutting-edge data center platform that operates with a capital-light model. This perspective supports the maintained Outperform rating and the $17.00 price target for Core Scientific’s stock. For deeper insights into Core Scientific’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, along with 10+ additional exclusive ProTips, available on InvestingPro.
In other recent news, Core Scientific reported first-quarter 2025 earnings, revealing a strategic shift towards high-density colocation infrastructure, as revenue fell to $79.5 million, a 16% sequential decrease. The company ended the quarter with $780 million in liquidity and plans to deliver 250 megawatts of capacity by the end of 2025. Cantor Fitzgerald analyst Brett Knoblauch raised the price target for Core Scientific shares to $18 from $16, maintaining an Overweight rating due to the company’s recent performance and future prospects. The analyst noted that Core Scientific’s contracts with CoreWeave are secure, and the company is seeing significant growth in its pipeline.
Additionally, Core Scientific announced the resignation of board member Todd Becker, who had been instrumental in financial events, including capital raises and the hiring of a new CFO. The company is searching for a new independent director to fill his position. In another board development, Elizabeth Crain was appointed to the Board of Directors and will serve as Chair of the Audit Committee. CEO Adam Sullivan expressed enthusiasm about Crain’s financial leadership and strategic growth expertise.
These recent developments highlight Core Scientific’s ongoing strategic shifts and board changes. The company is also adapting some of its facilities to support artificial intelligence workloads, aligning with broader industry trends.
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