Bernstein Maintains Optimism on Core Scientific Despite Recent Market Drops

Key Insights

Bernstein is optimistic about Core Scientific’s shares, despite their decline.
The company is recognized as a leader among AI-oriented bitcoin miners.
Bernstein maintains an outperform rating with a price target of $17.

Market Updates

Bernstein continues to support Core Scientific (CORZ) even as shares dropped 30% earlier this week, prompted by challenges from Chinese AI startup DeepSeek regarding the value of bitcoin miners as data centers.

The report mentions: “The stock is now available at a significant discount.”

Core Scientific is described as the “leader of the pack” among AI-focused miners, boasting a power supply of 1.3 gigawatts (GW) and a 12-year AI partnership with CoreWeave.

Analysts, led by Gautam Chhugani, suggested that the window for bitcoin miners to establish hybrid data center ventures is limited to 12-18 months in light of steady hyperscaler capital expenditures.

Core Scientific is expected to launch its first cluster of data centers in the first half of the year, reinforcing its strategy to acquire and develop new power sites.

Currently, the stock trades more in line with values typical for bitcoin mining than for data centers, even though 70% of its capacity is designated for AI, the report states.

Market Performance

Core Scientific’s stock was reported to be up 3.8%, trading at $11.90 earlier today.