Company Overview - Core Scientific, Inc. (NASDAQ:CORZ) is recognized as one of the best mid-cap tech stocks to buy according to analysts [1] - The company provides digital infrastructure for high-density colocation and digital asset mining [4] Analyst Ratings and Price Targets - Gautam Chhugani from Bernstein raised the price target on Core Scientific from $17 to $24 and assigned a Buy rating [1] - George Sutton from Craig-Hallum upgraded the stock from Hold to Buy with a price target of $27 following the company's announcement regarding the termination of its merger agreement with CoreWeave [3] Merger and Acquisition Activity - Core Scientific has rejected CoreWeave's all-cash buyout offer for the second time, with shareholders voting against the merger proposal [4] - Analyst Gil Luria from D.A. Davidson commented that shareholders believe their value should be higher based on current valuations of comparable companies, indicating a perception of inflated AI trade values rather than actual economic value [4] Industry Context - Data centers face significant challenges in building AI systems due to high electricity demands, and bitcoin miners are becoming integral to the AI value chain by providing energy-powered spaces for AI data centers [2] - US bitcoin mining companies are focusing on extracting more value from their energy resources in addition to mining bitcoins [2]

Core Viewpoint - CoreWeave's stock plummeted by 16% due to disappointing performance guidance, linked to delays from a data center partner, Core Scientific [1] Company Performance - CoreWeave acknowledged that delays from a single data center partner impacted operations, although other areas performed as planned [1] - CEO Mike Intrator emphasized that the overall performance was on track except for the mentioned delay [1] Market Reaction - The market reacted sharply, with Core Scientific's stock also falling by 10% following the news about the delays [1] - This incident highlights the potential for panic selling among investors due to any infrastructure delivery bottlenecks in the competitive AI computing landscape [1] Industry Context - The situation reflects the intense competition among tech giants and startups in establishing AI computing power, where any operational issues can significantly affect stock performance [1]

Core View - CoreWeave shares fell 13% following CEO Mike Intrator's comments on delays at a third-party data center that impacted full-year guidance in the latest earnings report [1] Group 1: Company Performance - CEO Mike Intrator stated that all aspects of the quarter went as planned except for delays at a singular data center [1] - Intrator emphasized that the issue was related to one data center provider, although he did not confirm the identity of the provider [3][4] - CoreWeave's quarterly earnings call revealed that there are 41 data centers in their portfolio, indicating that the impact is limited to one site [4] Group 2: Market Reactions - Following the announcement, Core Scientific shares dropped 7%, reflecting investor concerns about the delays [3] - CNBC's Jim Cramer highlighted that the delays are occurring at multiple locations connected to Core Scientific, which CoreWeave attempted to acquire for $9 billion earlier this year [2][3]

Core Insights - CoreWeave reported a remarkable 207% year-over-year revenue growth, reaching $1.2 billion, significantly exceeding expectations of $1.08 billion due to increased AI demand [1] - The company's market capitalization is approximately $52.94 billion, with shares rising 91% over the past six months, outperforming the S&P 500 Index's 19% return [2] - CoreWeave has established itself as a leading AI cloud provider, forming strategic partnerships with major companies like Nvidia, OpenAI, and Microsoft [3] Company Background - Founded in 2017, CoreWeave transitioned from a cryptocurrency mining operation to a provider of high-performance, GPU-accelerated cloud services for AI and machine learning [4] - The company has faced challenges, including a failed $9 billion acquisition attempt of Core Scientific, which was rejected by shareholders [5][11] Financial Performance - CoreWeave's backlog has increased to $30.1 billion, indicating strong future revenue visibility, while contracted power capacity has reached 2.2 gigawatts [6] - The company reported a net loss of $290.5 million, or $0.60 per share, an improvement from last year's loss of $323 million, but an adjusted loss of $130.8 million reflects rising costs [8] - For full-year 2025, CoreWeave expects revenue between $5.15 billion and $5.35 billion, an increase from previous projections [9] Market Position and Future Outlook - CoreWeave is the first to deploy Nvidia's GB200 NVL72 systems at scale, serving clients like IBM and Cohere [7] - Analysts maintain a "Moderate Buy" consensus on CoreWeave, with an average price target of $141.84, suggesting a potential upside of approximately 41% [14]

Group 1 - The analyst focuses on rigorous equity and credit research, utilizing various valuation models to derive a 12-month price target [1] - The research style includes a combination of DCF analysis, SOTP, peer/multiples analysis, and risk-adjusted approaches [1] - The analyst expresses a strong interest in sectors such as energy, commodities, technology, and finance [1] Group 2 - The analyst has a beneficial long position in the shares of CORZ, indicating a personal investment interest [2] - The article reflects the analyst's personal opinions and is not influenced by any business relationships [2][3] - The content is intended for informational purposes and does not constitute investment advice [3][4]

Core Viewpoint - Core Scientific (CORZ) is transitioning from crypto mining to artificial intelligence (AI) operations, leading to a significant increase in stock value and interest from potential acquirers like CoreWeave (CRWV) [1][2] Company Developments - CoreWeave previously offered $9 billion for Core Scientific, but shareholders believe the company's value will increase further if they hold out [2][4] - Core Scientific's stock has risen 152% over the past six months, despite a recent minor decline of nearly 5% [2] - The company has a current market capitalization of $7.1 billion, which is below the acquisition offer from CoreWeave, indicating shareholder confidence in future growth [4] Analyst Insights - Analysts have raised their price targets for CORZ stock significantly, with Cantor Fitzgerald setting a target of $26, Macquarie at $34, B. Riley at $30 (up from $17), Bernstein at $24 (up from $17), and Roth Capital at a new high of $40 [3] Future Potential - Core Scientific is positioned to benefit from the AI buildout, with expectations of signing more contracts as hyperscalers increase their data center investments [5] - The company has an active contract with CoreWeave worth $8.7 billion over 12 years, including a $1.2 billion expansion announced in February [6] - Analysts predict positive earnings per share (EPS) starting in 2026, with revenue growth projected at 113%, reaching $801.2 million [6] Investment Outlook - The outlook for Core Scientific appears positive, with the potential for securing more multi-billion-dollar partnerships and a strong contracted capacity that supports further upside for shareholders and analysts [7]

Group 1 - Core Scientific, Inc. (NASDAQ:CORZ) has been upgraded by Macquarie to "Outperform" with a new price target of $34.00 following the termination of its planned sale to CoreWeave (CRWV) [1] - Roth Capital has also raised its price target for CORZ from $23.50 to $40 while maintaining a Buy rating, indicating confidence in CORZ's ability to pursue a standalone path and engage with customers after the failed takeover [2] - The company is transitioning into an AI business by leveraging its advanced infrastructure and expertise in high-performance computing (HPC) [3] Group 2 - Despite the potential of CORZ as an investment, there are other AI stocks that may offer greater upside potential and carry less downside risk [3]

Core Scientific and CoreWeave Acquisition - Core Scientific shareholders voted against the acquisition offer from CoreWeave, which was anticipated to be a significant data-center M&A deal in the mining sector [2] - The rejection of the deal alters the investment landscape by returning hundreds of megawatts back to the market for companies like Microsoft and Oracle [2] CleanSpark's AI Expansion - CleanSpark announced the acquisition of a new site in Texas with a 385 MW power pipeline, indicating a shift towards integrating AI and high-performance computing (HPC) workloads alongside traditional mining [4] - The stock of CleanSpark has increased nearly 100% since July 2025, following the market's anticipation of the use of its power pipeline for AI [5] TeraWulf's Long-term AI Hosting Agreement - TeraWulf signed a 25-year AI hosting deal with FluidStack, marking one of the longest contracts between a Bitcoin miner and an AI hosting firm, which enhances long-term revenue visibility [6] - This agreement reflects the industry's pivot towards high-margin compute workloads and TeraWulf's focus on the 'powershell' model for building AI factories [6] Global Hashrate Trends - The global hashrate has surged past 1.1 Zettahash, with significant contributions from China and Russia, despite Western miners potentially slipping in their market position [1][7] - The expansion of hashrate in these countries is occurring at a faster pace than expected, with many U.S. miners halting machine purchases to pivot towards AI [7][8]

Core Partnership and Acquisitions - The partnership with Core Scientific is solid, with a commitment to consume their services for the next 10 to 15 years through infrastructure extensions [2][3] - Recent shareholder votes resulted in the rejection of an acquisition, primarily due to price considerations, despite strategic alignment [3] - The company has been actively acquiring other firms, such as Mariano and Waits Biases, to enhance its cloud capabilities and broaden software solutions [4][8] Infrastructure Development - The company has a significant footprint within Core Scientific, utilizing approximately 580 megawatts of infrastructure, while also signing over 600 megawatts of data center infrastructure outside of Core Scientific [6][7] - New data centers are being built in Pennsylvania and New Jersey to increase control over infrastructure [9] - The company is focused on raising capital to support ongoing infrastructure buildout, leveraging innovative financing products [11][12] Market Position and Strategy - The company believes it has a strong business model that generates substantial returns and meets global infrastructure needs [13][14] - There is a growing interest in the company's offerings, particularly in artificial intelligence infrastructure, which is seen as a bullish indicator for future growth [16][17] - The company aims to diversify its customer base while remaining disciplined in its acquisition strategy, ensuring that any potential deals are at the right price [10][15]

Core Scientific and CoreWeave Acquisition Attempt - Core Scientific shareholders rejected a $9 billion all-stock acquisition offer from CoreWeave, influenced by a vote-no recommendation from their largest shareholder, Sina Toussi of Two Seas Capital [1][4] - CoreWeave has transitioned from crypto mining to serving AI workloads, with its market cap increasing from $14 billion to $66 billion since its IPO, reflecting strong investor interest in AI [2] - CoreWeave had previously signed a $10 billion, 12-year contract with Core Scientific for AI services, which was seen as a premium offer compared to Core Scientific's share price at the time [3] Investor Sentiment and Market Dynamics - Investor Toussi believes Core Scientific can independently achieve success similar to CoreWeave, citing rising equity valuations in AI infrastructure as a reason to reject the acquisition offer [4] - Following the rejection of the acquisition, Core Scientific's stock price increased, leading to a market cap of $6.6 billion [4] - The rejection of acquisition bids in pursuit of larger offers indicates a potential AI bubble in the market [7] CoreWeave's Strategic Moves - CoreWeave continues to pursue acquisitions, recently acquiring Marimo, an open-source Jupyter Notebook competitor, for an undisclosed amount, with Marimo having raised approximately $5 million [7] - The acquisition of Marimo aligns with CoreWeave's strategy to enhance its capabilities in AI app development [8]