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On Tuesday, Cantor Fitzgerald's analyst Brett Knoblauch adjusted the price target for Core Scientific Inc . (NASDAQ:CORZ) to $16.00, down from the previous $20.00, while reiterating an Overweight rating on the stock. Currently trading at $7.22, the stock shows high volatility according to InvestingPro data, with analyst targets ranging from $16 to $24, suggesting significant upside potential. The revision follows Core Scientific's lack of an update on its AI/HPC business. In contrast, CoreWeave (CRWV, NC), which began trading on March 28 after its initial public offering, has reportedly engaged in discussions with Google (NASDAQ:GOOGL) to rent out Nvidia (NASDAQ:NVDA) Blackwell GPUs. This move by CoreWeave is seen as a potentially positive sign for Core Scientific, as CoreWeave's market activity is often considered indicative of Core Scientific's performance.
The analyst highlighted that despite Core Scientific not directly signing a contract with a hyperscaler, it is likely to host the AI/HPC infrastructure that will support workloads for companies like OpenAI, Google, and Microsoft (NASDAQ:MSFT). This support is expected to drive momentum for Core Scientific's business. The market's perception of Core Scientific has been influenced by CoreWeave's diversification efforts, including the recent announcement involving Google and a previous one with OpenAI.
Core Scientific's stock has experienced a significant decline, dropping approximately 50% year-to-date, compared to a roughly 19% fall in the Russell 2000 Index. Despite the recent pullback, InvestingPro analysis shows the company maintains a 'Fair' overall financial health score of 2.05 out of 5, with strong liquidity as evidenced by a current ratio of 6.72. The company generated revenue of $510.67 million in the last twelve months, though it currently trades above its Fair Value estimate. The analyst emphasized that Core Scientific is now valued at more than 50% below CoreWeave's projected spending on Core Scientific's data centers over the next two years. Despite this, Cantor Fitzgerald sees the current risk/reward profile as very attractive and maintains its Overweight rating. With a market capitalization of $2.06 billion and an EV/EBITDA multiple of 24.72x, investors seeking deeper insights can access comprehensive valuation metrics and 10+ additional ProTips through InvestingPro's detailed research report. However, the price target has been lowered to reflect the devaluation across the Bitcoin mining and data center sectors.
In other recent news, Core Scientific reported a notable increase in its bitcoin mining activities, producing 247 self-mined bitcoins in March 2025, up from 215 in February. The company operates around 163,000 bitcoin miners, with its owned fleet contributing significantly to its hash rate. In addition to mining, Core Scientific is transitioning towards high-performance computing (HPC) infrastructure, which has secured $10 billion in long-term contracted revenue, primarily with CoreWeave. This strategic shift was highlighted by Clear Street analysts, who initiated coverage with a Buy rating and a $20 price target, citing the company's potential for stable growth.
Furthermore, Core Scientific appointed KPMG as its new auditor, replacing Marcum LLP, and addressed material weaknesses in its internal controls. H.C. Wainwright maintained a Buy rating with a $17 price target, emphasizing Core Scientific's relationship with CoreWeave, which recently secured a contract with OpenAI and plans an IPO. Compass Point also reaffirmed a Buy rating with a $20 target, noting the company's extended contract with CoreWeave and strong unit economics. These developments underscore Core Scientific's evolving business strategy and financial outlook.
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