Trump/Cook, Nissan weakness, more tariffs and gold - what’s moving markets
On Wednesday, H.C. Wainwright reaffirmed a Buy rating and a $17.00 price target on Core Scientific Inc . (NASDAQ:CORZ), following news that Core Scientific’s primary high-performance computing (HPC) customer, CoreWeave, had secured a significant contract with OpenAI. With the stock currently trading at $8.63 and analyst targets ranging from $17 to $24, InvestingPro data shows significant potential upside in analysts’ view. CoreWeave, which began as an Ethereum mining operation, recently announced its plans for an initial public offering valued at $35 billion, indicating its strength in networking development and customer base.
Core Scientific’s shares experienced volatility during market trading on March 10, initially dropping about $1 to the $6.50 level amid a broader sell-off in the Nasdaq. According to InvestingPro data, the stock has seen a -10.06% return over the past week, though it maintains an impressive 143.79% gain over the past year. As the trading day progressed, the stock recovered, driven by the positive developments surrounding CoreWeave’s new deal and its upcoming IPO. CoreWeave’s financial performance has been impressive, with the company reporting $1.92 billion in revenue and 62% margins for 2024, a significant increase from $228 million in 2023. Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) accounted for 77% of CoreWeave’s revenue, underscoring the company’s strong customer relationships.
The analyst at H.C. Wainwright highlighted Core Scientific’s reputation for strong execution and reiterated confidence in the company’s stock, with no changes to the estimates or price targets. The $17 price target suggests a substantial upside from the current trading levels. InvestingPro analysis reveals a FAIR Financial Health score of 1.88, with notably strong liquidity indicated by a current ratio of 6.72. Subscribers can access 8 additional ProTips and comprehensive financial metrics in the Pro Research Report. Core Scientific’s association with CoreWeave, which has shown proficiency in networking development through its history with GPUs and partnerships like that with Nvidia (NASDAQ:NVDA), is seen as a key factor in supporting the stock’s value.
The recent developments for CoreWeave, including the OpenAI deal and the anticipated public offering, are expected to bolster Core Scientific’s position in the market. With a market capitalization of $2.54 billion and annual revenue of $510.67 million, Core Scientific demonstrates significant scale in the industry. The analyst’s commentary underscores the interconnected success of Core Scientific and its main HPC customer, suggesting a positive outlook for the stock’s future performance. Get deeper insights into Core Scientific’s valuation and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Core Scientific Inc. reported a challenging fourth quarter of 2024, with total revenue dropping by 33% year-over-year to $94.9 million and a net loss widening to $265 million. Despite these setbacks, the company successfully reduced its debt by $270 million through Chapter 11 restructuring and ended the year with over $830 million in cash. Furthermore, Core Scientific announced an extension of its CoreWeave contract, adding 70 megawatts at its Denton facility, which is expected to generate over $10 billion in cumulative revenue over 12 years. This expansion brings the total contracted high-performance computing megawatts to approximately 590 across six sites. Analyst Chase White from Compass Point reaffirmed a Buy rating on Core Scientific with a $20 price target, highlighting the company’s strong fundamentals and valuation. Meanwhile, Cantor Fitzgerald analyst Brett Knoblauch adjusted the price target to $20 from $21, maintaining an Overweight rating despite a decline in Bitcoin mining productivity and revenue. Additionally, Core Scientific appointed Jim Nygaard as the new Chief Financial Officer, effective March 17, 2025, as part of a planned CFO succession.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.