Core Scientific, Inc. Common Stock
CORZ
$19.44
-7.47%
Core Scientific, Inc. is a technology company that designs, builds, and operates digital infrastructure for high-density colocation services and digital asset mining, operating through three segments: Digital Asset Self-Mining, Digital Asset Hosted Mining, and Colocation for AI/HPC operations. As a leading player in the Bitcoin mining and AI infrastructure crossover space, the company is distinct for its large-scale mining fleet and its strategic pivot toward hosting AI workloads, which has attracted significant investor attention. The current narrative centers on the company's transformation from a pure-play Bitcoin miner to a diversified digital infrastructure provider, with recent news highlighting its success in securing financing for expansion and the broader industry validation of the miner-to-AI thesis, despite near-term earnings misses and volatility in Bitcoin prices.…
CORZ
Core Scientific, Inc. Common Stock
$19.44
Related headlines
Investment Opinion: Should I buy CORZ Today?
Based on the analysis, CORZ is rated a Buy, driven by its strong revenue growth and strategic pivot to AI infrastructure. The consensus analyst rating is Strong Buy with an average target of $37.13, implying 76.4% upside. The thesis is that the company's expansion into high-margin AI colocation will drive significant revenue growth and eventually profitability, justifying the premium valuation.
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CORZ 12-Month Price Forecast
The AI assessment is bullish, driven by the company's strong revenue growth and strategic pivot to AI infrastructure. The analyst consensus and price targets support a positive outlook, but the high valuation and persistent losses temper confidence. The stance would be upgraded to high confidence if the company achieves positive operating income or secures major AI contracts. Conversely, a downgrade to neutral would occur if revenue growth decelerates or Bitcoin prices fall sharply.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Core Scientific, Inc. Common Stock's 12-month outlook, with a consensus price target around $37.13 and implied upside of +91.0% versus the current price.
Average Target
$37.13
0 analysts
Implied Upside
+91.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$28 - $55
Analyst target range
Analyst coverage is robust with 16 analysts, and the consensus recommendation is a Strong Buy, with a mean rating of 1.29 (where 1 is Strong Buy and 5 is Sell). The average price target is $37.13, implying a substantial 76.4% upside from the current price of $21.05. The distribution includes 12 Buy ratings, 3 Outperform/Overweight, and 1 Hold, indicating overwhelmingly bullish sentiment. The target range spans from $28.00 (low) to $55.00 (high), with the high target assuming successful execution of AI colocation contracts and continued revenue growth, while the low target reflects risks such as Bitcoin price volatility and margin compression. Recent ratings actions have been predominantly positive, with firms like BTIG, B. Riley, and Jefferies reiterating Buy ratings, and no downgrades in the past three months, signaling strong conviction in the company's strategic pivot.
Bulls vs Bears: CORZ Investment Factors
Core Scientific presents a high-risk, high-reward opportunity. The bull case is anchored by strong revenue growth, a validated AI pivot, and overwhelming analyst optimism, with a consensus price target implying 76% upside. However, the bear case is equally compelling, with persistent losses, negative cash flow, and a valuation that leaves no room for disappointment. The most critical tension is whether the company can translate its AI infrastructure investments into sustainable profitability before its cash burn forces dilution or distress. Currently, the bull case has stronger evidence given the revenue trajectory and industry validation, but the margin for error is thin.
Bullish
- Revenue growth accelerating: Q1 2026 revenue of $115.2M grew 44.9% YoY, up from $79.8M in Q4 2025, showing strong momentum. This growth is driven by the Digital Asset Mining Service segment ($150.0M) and Hosting Service revenue ($20.1M), reflecting successful expansion into AI colocation.
- Analyst consensus Strong Buy: With 16 analysts, the consensus rating is Strong Buy (mean 1.29), and the average price target of $37.13 implies 76.4% upside from the current price of $21.05. The target range spans $28 to $55, with 12 Buy ratings and no downgrades in the past three months.
- AI infrastructure pivot validated: The recent TeraWulf-Anthropic $19B lease validates the Bitcoin miner-to-AI crossover thesis, boosting confidence in CORZ's similar strategy. This could lead to high-margin, predictable revenue from AI colocation, diversifying away from volatile Bitcoin mining.
- Improving gross margin: Gross margin improved to 25.8% in Q1 2026 from 26.2% in Q4 2025, indicating stabilization despite cost pressures. This suggests the company is managing its cost structure effectively while scaling its AI and hosting services.
Bearish
- Persistent unprofitability: Q1 2026 net loss of $347.2M, with operating income of -$23.7M, shows the company is still far from profitability. The net margin is -90.5%, and the trailing PE is negative, indicating significant earnings risk.
- Elevated valuation: PS ratio of 14.5x is 81% above the software infrastructure industry average of ~8x, and forward PE of 150.4x implies the market expects a dramatic earnings recovery. This leaves little room for error.
- High beta and volatility: Beta of 5.59 makes CORZ extremely sensitive to market swings, and the stock has a max drawdown of -40.74% over the past year. This volatility could lead to significant losses in a market downturn.
- Negative free cash flow: TTM free cash flow is -$471.2M, indicating the company is burning cash to fund expansion. This raises concerns about its ability to sustain operations without additional financing or a rapid improvement in profitability.
CORZ Technical Analysis
Core Scientific's stock has exhibited a strong uptrend over the past year, with a 1-year price change of +49.2%, significantly outperforming the S&P 500's +21.5% over the same period. The current price of $21.05 sits at approximately 45% of the 52-week range (low: $13.14, high: $30.46), indicating the stock has pulled back considerably from its highs but remains well above its lows. This positioning suggests the stock is in a corrective phase within a longer-term uptrend, offering a potential entry point for investors who believe the fundamental thesis remains intact.
Beta
5.59
5.59x market volatility
Max Drawdown
-40.7%
Largest decline past year
52-Week Range
$13-$30
Price range past year
Annual Return
+34.9%
Cumulative gain past year
| Period | CORZ Return | S&P 500 |
|---|---|---|
| 1m | -17.2% | +2.4% |
| 3m | -14.7% | +4.7% |
| 6m | +7.5% | +11.7% |
| 1y | +34.9% | +21.3% |
| ytd | +21.6% | +13.4% |
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CORZ Fundamental Analysis
Core Scientific's revenue trajectory shows strong growth, with Q1 2026 revenue of $115.2 million, a 44.9% year-over-year increase, and sequential growth from $79.8 million in Q4 2025. The growth is driven by the Digital Asset Mining Service segment, which contributed $150.0 million, and Hosting Service revenue of $20.1 million, reflecting the company's expansion into AI colocation. However, the company remains unprofitable, with a net loss of $347.2 million in Q1 2026, though this includes significant non-cash items; operating income was -$23.7 million, and gross margin improved to 25.8% from 26.2% in Q4 2025, indicating ongoing margin pressure but stabilization.
Quarterly Revenue
$115244000.0B
2026-03
Revenue YoY Growth
+44.9%
YoY Comparison
Gross Margin
25.8%
Latest Quarter
Free Cash Flow
$-471202000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is CORZ Overvalued?
Given the negative trailing net income, the price-to-sales (PS) ratio is the primary valuation metric, currently at 14.5x, which is elevated compared to the software infrastructure industry average of around 8x, representing a premium of 81%. The forward PE of 150.4x implies the market expects a dramatic earnings recovery, as analysts project EPS of $1.60 for the next fiscal year. Historically, the PS ratio has ranged from 3.1x in Q4 2021 to 70.5x in Q3 2025, and the current 14.5x is near the lower end of the recent range, suggesting the stock may be undervalued relative to its own history if the growth trajectory continues.
PE
-16.5x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-25.9x
Enterprise Value Multiple
Investment Risk Disclosure
Financially, CORZ is in a precarious position. The company reported a net loss of $347.2M in Q1 2026, with operating income of -$23.7M, indicating that core operations are not yet profitable. The negative free cash flow of -$471.2M TTM highlights a significant cash burn, which could necessitate further debt or equity financing, potentially diluting shareholders. The debt-to-equity ratio of -1.10 is negative due to negative equity, a red flag that suggests the company's liabilities exceed its assets, increasing financial risk. Additionally, the gross margin of 25.8% is thin, leaving little buffer for cost overruns or revenue shortfalls.
FAQ
The key risks are: 1) Financial risk: The company has negative free cash flow of -$471.2M and a net loss of $347.2M, which could lead to dilution or liquidity issues. 2) Market risk: The stock has a beta of 5.59, making it highly volatile, and a max drawdown of -40.74% in the past year. 3) Competitive risk: The AI colocation space is becoming crowded, and larger players could undercut CORZ. 4) Bitcoin price risk: A significant drop in Bitcoin could severely impact mining revenue, as seen in Q3 2025 when gross margin fell to 4.7%.
The 12-month forecast is bullish, with a base case target of $37.13 (76% upside) and a bull case target of $55 (161% upside). The bear case target is $13.14, representing a -37.6% decline. The base case has a 50% probability, assuming continued revenue growth and stable Bitcoin prices. The bull case (30% probability) requires successful AI contract execution, while the bear case (20% probability) involves Bitcoin price declines or execution failures.
CORZ is overvalued based on current earnings, with a trailing PE of -16.5 and a forward PE of 150.4x. However, its PS ratio of 14.5x is below its historical average of around 20x, suggesting it may be undervalued relative to its own growth trajectory. Compared to the industry average PS of 8x, it trades at a premium, indicating the market expects above-average growth. The valuation implies that investors are betting on a dramatic earnings recovery, which is a high-risk proposition.
CORZ is a good buy for investors with a high risk tolerance and a long-term horizon. The stock offers significant upside potential, with analysts targeting a 76.4% increase from the current price. However, the company is unprofitable and has a high valuation, making it a speculative investment. If you believe in the AI infrastructure thesis and can withstand volatility, it could be a rewarding addition to a diversified portfolio. Otherwise, it may be prudent to wait for more evidence of profitability.
CORZ is more suitable for long-term investment, given its high volatility and speculative nature. The company is in a growth phase, and its AI infrastructure pivot could take several years to fully materialize. A minimum holding period of 3-5 years is recommended to ride out the volatility and allow the thesis to play out. Short-term trading is possible but extremely risky due to the high beta and sensitivity to Bitcoin prices.