CORZ: Power Portfolio And AI Demand Will Unlock Substantial Upside

Analysts have raised their fair value estimate for Core Scientific from $33.36 to $35.86, citing higher price targets and expanded AI and high performance compute contracts. The revised estimate also reflects updated assumptions for the discount rate, revenue growth, profit margins, and future P/E levels.

Analyst Commentary

Recent research on Core Scientific highlights a split view. Bullish analysts point to large AI and high performance compute contracts and growing contracted power capacity. More cautious voices focus on how much of that potential may already be reflected in the current Core Scientific share price and on execution risk around future leases.

Bullish Takeaways

• Bullish analysts see the long term high performance compute colocation agreement tied to AMD as a key support for growth, with 15 years of contracted revenue across US$14b of commitments and roughly 530 MW of IT capacity.
• The AMD related deals and other hyperscale contracts take Core Scientific to roughly 1.1 GW of contracted billable capacity and over 1 GW of leased high performance compute capacity, which bullish analysts frame as support for their higher valuation work.
• Several bullish analysts link rising price targets to Core Scientific expanding its approved and reserved power capacity, including references to 1.2 GW of approved power this year and nearly 1.9 GW of additional reserved capacity that could support incremental contracts.
• Some bullish analysts argue that Core Scientific is building a scalable AI infrastructure platform, with its pivot away from bitcoin mining and existing lease agreements used as key inputs into higher target prices and updated valuation methodologies.

Bearish Takeaways

• Bearish analysts argue that Core Scientific already trades above their estimate of equity value on the existing lease portfolio and net debt, which leads them to more cautious price targets and ratings.
• There is concern that a large portion of the expected business inflection around 2027 and 2028 is already reflected in the stock, especially after a share price move of 87% year to date and 124% over the past twelve months referenced in one report.
• Some bearish analysts point to elevated execution risk, noting that new lease deals have taken longer to finalize than previously expected, which raises questions around how quickly Core Scientific can translate its power and site pipeline into contracted cash flows.
• Cautious voices also highlight that the market may already be pricing in much of the capacity that can realistically be leased over the near to medium term, which could limit upside if contract momentum or economics differ from current expectations.

What’s in the News for Core Scientific

• Core Scientific signed a 15 year AI infrastructure partnership with AMD that includes initial leases for 529 MW of data center capacity across Texas, Oklahoma, Alabama and Georgia, with AMD able to reserve up to 2.5 GW of capacity by 2028 and more than US$14b in projected base contracted revenue. Source: recent AMD partnership announcement.
• The AMD agreement supports Core Scientific’s shift away from bitcoin mining toward AI infrastructure services, with leased power capacity at roughly 1.1 GW as of mid 2026 and potential contracted revenue cited at more than US$24b, while current billing for 437 MW was tied to about US$635m in annualized colocation GAAP revenue. Source: recent AMD partnership announcement.
• Core Scientific reported Q2 2026 revenue of US$164.2m, which the company attributed mainly to the Colocation segment, and a net loss of US$1.16b or a loss of US$3.32 per share, alongside heavy investment in infrastructure to support AI and digital asset clients. Source: Alphastreet Q2 2026 results.
• KBW downgraded Core Scientific to Market Perform from Outperform and cut its price target, citing higher execution risk as the company commits around US$2b to 2026 data center development and acquisitions before securing matching lease contracts, while construction of new data halls is moving ahead without signed customers. Source: KBW research.
• Core Scientific outlined plans to scale its Muskogee, Oklahoma campus to about 1.5 GW of gross power, or about 1.0 GW of leasable power, supported by roughly 250 acres of land, and reported that its leased 70 MW building designed for the Nvidia GB300 platform is in final testing and commissioning for a targeted Q2 2026 customer delivery. Source: company expansion update.

Valuation Changes for Core Scientific

• Fair Value has risen modestly, with the estimate moving from $33.36 to $35.86 per share.
• Discount Rate has increased from 9.37% to 10.35%, which points to a higher required return in the updated model.
• Revenue Growth has been marked down from 80.73% to 75.40%, indicating slightly more conservative top line expectations for Core Scientific.
• Net Profit Margin has risen from 14.90% to 17.74%, reflecting a stronger assumed level of profitability in future periods.
• Future P/E has been reduced from 50.06x to 42.74x, which implies a lower valuation multiple applied to Core Scientific in the latest work.