Bernstein remains optimistic about Core Scientific (CORZ) despite a recent 30% drop in its stock price, triggered by a challenge from Chinese AI startup DeepSeek. The drop has resulted in shares being offered at a significant discount, according to a research report published Thursday.
Core Scientific continues to lead the AI-focused bitcoin mining sector, the report states, with 1.3 gigawatts (GW) of available power and a 12-year AI contract with CoreWeave. Bernstein analysts, led by Gautam Chhugani, emphasize that bitcoin miners have a limited 12-18 month window to transition into hybrid data center models, with stable capital expenditures from hyperscalers.
The company is on track to deliver its first cluster of data centers in the first half of 2025 and remains committed to purchasing and developing new power sites. Despite the recent decline, Core Scientific’s stock is now priced more in line with bitcoin mining valuations rather than data center valuations, even though 70% of its capacity is dedicated to AI, the report notes.
Bernstein maintains an outperform rating for Core Scientific, setting a price target of $17 per share. The stock was up by 3.8% to $11.90 during early trading.
