Domo signs strategic collaboration agreement with AWS for AI solutions
Investing.com - Cantor Fitzgerald maintained its Overweight rating and $18.00 price target on Core Scientific Inc . (NASDAQ:CORZ) on Friday. The research firm believes the market is undervaluing Core Scientific’s partnership with CoreWeave and its available capacity for artificial intelligence and high-performance computing (AI/HPC). The stock, currently trading at $16.36 with a market capitalization of $4.87 billion, has shown remarkable momentum with a 37.94% gain in the past week, though InvestingPro data indicates the stock may be in overbought territory.
The firm noted that Core Scientific will gain a significant cost of capital advantage in the AI/HPC sector through its CoreWeave deal. This advantage will enable the company to expand beyond its current capacity and strengthen its position as a market leader in the AI/HPC space. With analyst price targets ranging from $15 to $23 and a strong liquidity position evidenced by a current ratio of 4.26, InvestingPro analysis reveals 13 additional key insights about the company’s potential.
Cantor Fitzgerald also highlighted that the market appears to be assigning virtually no value to Core Scientific’s Bitcoin mining operations. The firm pointed out that this segment is currently profitable at existing cryptocurrency prices.
The research firm emphasized that Core Scientific’s Bitcoin mining business has "significant upside" potential if Bitcoin prices increase from current levels. This represents an additional growth avenue beyond the company’s AI/HPC operations.
Core Scientific operates as a blockchain computing data center provider and digital asset mining company, with dual revenue streams from both cryptocurrency mining and hosting services for AI and high-performance computing applications.
In other recent news, Core Scientific Inc. has been the focus of several analyst evaluations and corporate developments. JMP Securities reiterated its Market Outperform rating for Core Scientific, maintaining a price target of $15.00. The firm highlighted the company’s significant market capitalization and potential for growth in its High-Performance Computing (HPC) segment. Additionally, Bernstein analysts maintained their Outperform rating with a $17.00 price target, noting Core Scientific’s strategic partnerships and expansion efforts, particularly with CoreWeave, which has significantly impacted investor confidence.
The company also announced the appointment of Elizabeth Crain to its Board of Directors, where she will serve as the Chair of the Audit Committee. Crain’s extensive experience in investment banking and executive leadership is seen as a valuable addition to the board. Meanwhile, Todd Becker, another board member, resigned from his position, having played a key role during Core Scientific’s financial restructuring.
Core Scientific has been actively adapting its facilities to support artificial intelligence workloads, aligning with its growth strategy post-bankruptcy. The company’s strategic allocation of power capacity remains a focal point for analysts, as it continues to drive value in both its HPC and Bitcoin mining operations. These developments reflect Core Scientific’s ongoing efforts to strengthen its market position and enhance shareholder value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.