Domo signs strategic collaboration agreement with AWS for AI solutions
Investing.com - Core Scientific (NASDAQ:CORZ) shares surged 37.94% this week, reaching $16.36, following Jefferies’ analysis of potential takeover rumors involving CoreWeave (NASDAQ:CRWV). According to InvestingPro data, the stock’s technical indicators suggest overbought conditions.
Jefferies analysts commented on a Wall Street Journal report that CoreWeave may be in talks to acquire Core Scientific, which is currently developing 590 MW of DC capacity for CoreWeave. Neither company has officially commented on the rumored acquisition discussions.
The investment firm suggested the combination would make strategic sense, allowing CoreWeave to vertically integrate its infrastructure, reduce operating expenses, and leverage Core Scientific’s platform to expand its data center development pipeline.
Jefferies estimated a potential takeout value range of $16-$23 for Core Scientific shares, providing a significant premium to recent trading prices.
Core Scientific, which emerged from bankruptcy in January 2023, has been expanding its data center operations focused on supporting artificial intelligence and high-performance computing workloads.
In other recent news, Core Scientific Inc . has seen a series of significant developments. Cantor Fitzgerald reiterated its Overweight rating on the company, maintaining a price target of $18.00, highlighting Core Scientific’s partnership with CoreWeave and the potential growth in its AI and high-performance computing (HPC) sectors. Meanwhile, JMP Securities also maintained a positive outlook with a Market Outperform rating and a $15.00 price target, emphasizing the company’s substantial power capacity and potential value in its HPC business. Bernstein analysts continued to support an Outperform rating with a $17.00 target, noting the company’s transition towards a data center platform model and its partnership with CoreWeave, which has seen substantial growth.
Additionally, Core Scientific has made leadership changes, appointing Elizabeth Crain to its Board of Directors as Chair of the Audit Committee, bringing her extensive financial expertise to the company. This appointment is part of the company’s strategic efforts to strengthen its leadership team. Core Scientific’s financial position includes a market capitalization of approximately $3.2 billion and a debt level around $400 million, according to JMP Securities. The company’s future growth is seen as tied to its ability to capitalize on its contracted power capacity and strategic partnerships. These developments reflect the company’s ongoing efforts to enhance its market position and shareholder value.
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