Core Scientific Inc: Strategic Positioning and Growth Potential Highlighted by Key Partnerships and Undervaluation

Bernstein analyst Gautam Chhugani has maintained their bullish stance on CORZ stock, giving a Buy rating on May 16.

Gautam Chhugani has given his Buy rating due to a combination of factors that highlight Core Scientific Inc’s strategic positioning and growth potential. The company has shown significant progress in its partnership with CoreWeave, which has recently secured substantial orders from OpenAI, indicating a robust delivery pipeline for Core Scientific. This partnership is expected to boost investor confidence as Core Scientific is involved in executing one of the largest GPU clusters in the U.S., which is a testament to its capabilities in the data center space.
Moreover, Core Scientific is currently undervalued as it is still perceived primarily as a Bitcoin miner rather than a cutting-edge data center platform. The company’s capital-light model and its substantial contracted capacity with CoreWeave position it well for future growth. Additionally, Core Scientific’s strong sales pipeline, including non-hyper-scaler enterprise deals, further supports the positive outlook, making it an attractive investment opportunity.

Chhugani covers the Financial sector, focusing on stocks such as Coinbase Global, Riot Platforms, and Marathon Digital Holdings. According to TipRanks, Chhugani has an average return of 27.2% and a 60.00% success rate on recommended stocks.

In another report released on May 16, Needham also maintained a Buy rating on the stock with a $16.00 price target.