Core Scientific, Inc. Common Stock
CORZ
$22.40
+6.97%
Core Scientific designs, builds, and operates digital infrastructure for high-density colocation services and digital asset mining, serving both AI/HPC workloads and cryptocurrency mining clients. As a leading Bitcoin miner-turned-AI infrastructure provider, the company is uniquely positioned at the intersection of digital asset mining and high-performance computing colocation. The current investor narrative centers on its strategic pivot to AI infrastructure, with recent news highlighting the crossover thesis from Bitcoin mining to AI colocation, while the company navigates volatile Bitcoin prices and the need for substantial capital to fund its expansion into AI data centers.…
CORZ
Core Scientific, Inc. Common Stock
$22.40
Related headlines
Investment Opinion: Should I buy CORZ Today?
Rating: Hold. Core Scientific is a speculative growth story with massive upside potential but equally significant financial risks. The unanimous Strong Buy consensus and 59.3% average target upside are compelling, but the negative equity, cash burn, and extreme volatility warrant caution. The thesis hinges on successful execution of the AI colocation pivot, which is not yet reflected in earnings.
Supporting Evidence: The forward PS ratio of 1.19x implies the market expects revenue to grow from $115M (Q1 2026 annualized ~$461M) to $3.89B, a 7.4x increase. Gross margins improved from 10.3% to 25.8% YoY, signaling operational leverage. Analysts project EPS of $1.48 for the current fiscal year, implying a forward PE of 70.6x, which is high but could compress if growth materializes. The company has secured financing for expansion, and the TeraWulf/Anthropic deal validates the AI infrastructure crossover thesis.
Risks & Conditions: This Hold would upgrade to Buy if the company reports a quarter with positive free cash flow or if the forward PS compresses below 1.0x on continued revenue growth. It would downgrade to Sell if revenue growth decelerates below 20% YoY or if Bitcoin prices fall below $50,000, pressuring the mining segment. Overall, CORZ appears overvalued on trailing metrics but potentially undervalued on forward expectations, making it a high-conviction bet for aggressive growth investors but too risky for conservative portfolios.
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CORZ 12-Month Price Forecast
The AI assessment is bullish with medium confidence, reflecting the strong analyst consensus and improving gross margins, but tempered by the significant financial risks and extreme volatility. The key factor is execution on the AI colocation strategy; if the company can deliver on revenue growth, the stock has substantial upside. However, the negative equity and cash burn are serious concerns that could derail the thesis. An upgrade to high confidence would require evidence of positive free cash flow or a major contract win, while a downgrade would follow a missed earnings target or analyst downgrade.
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 $33.36 and implied upside of +48.9% versus the current price.
Average Target
$33.36
0 analysts
Implied Upside
+48.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$27 - $55
Analyst target range
The stock is covered by 16 analysts, with a consensus recommendation of Strong Buy (mean score 1.41 on a 1-5 scale, where 1 is Strong Buy). The average target price is $33.36, implying 59.3% upside from the current price of $20.94. The distribution shows no Hold or Sell ratings, indicating unanimous bullish sentiment among analysts. The target range spans from $27.00 (low) to $55.00 (high), representing a wide spread of $28.00. The high target of $55.00 assumes successful execution of the AI infrastructure pivot and significant revenue growth, while the low target of $27.00 still implies 28.9% upside, suggesting downside risk is limited in analysts' views. Recent ratings actions include multiple Buy reiterations from BTIG, B. Riley, Jefferies, Needham, and Macquarie, with no downgrades. The wide target spread indicates high uncertainty, but the consensus is firmly bullish, reflecting confidence in the company's strategic transformation despite near-term losses.
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Bulls vs Bears: CORZ Investment Factors
Core Scientific presents a high-risk, high-reward opportunity at the intersection of Bitcoin mining and AI infrastructure. The bull case rests on a successful pivot to AI colocation, validated by industry deals and unanimous analyst optimism, with 59% upside to the average target. However, the bear case highlights severe financial instability—negative equity, heavy cash burn, and extreme volatility—that could lead to significant downside if growth disappoints. The single most important tension is whether the company can execute its AI infrastructure expansion fast enough to justify the forward revenue expectations embedded in the valuation. Currently, the bullish narrative has stronger evidence from analyst sentiment and industry validation, but the financial risks are substantial and warrant caution.
Bullish
- AI Infrastructure Pivot Unlocks Massive Revenue: Core Scientific is transitioning from Bitcoin mining to high-density AI colocation, a market with massive TAM. Recent news highlights TeraWulf's $19B Anthropic deal, validating the crossover thesis and suggesting similar potential for CORZ. The forward PS ratio of 1.19x implies the market expects revenue to surge from $115M (Q1 2026) to $3.89B annually, a 33x increase.
- Unanimous Analyst Strong Buy Consensus: All 16 analysts rate CORZ a Strong Buy, with a mean recommendation of 1.41 (1=Strong Buy). The average target price of $33.36 implies 59.3% upside from $20.94, and the low target of $27.00 still offers 28.9% upside. No Hold or Sell ratings exist, reflecting extreme conviction in the company's strategic direction.
- Improving Gross Margins Signal Operational Leverage: Gross margin improved from 10.3% in Q1 2025 to 25.8% in Q1 2026, a 15.5 percentage point increase. This suggests the company is gaining pricing power or cost efficiencies as it scales AI colocation, which could lead to profitability if revenue growth continues.
- Strong Revenue Growth Trajectory: Revenue grew 44.9% YoY in Q1 2026 to $115.2M, following a period of volatile but overall upward trend. The Digital Asset Self-Mining segment generated $150M, while Hosting Services added $20.1M, showing diversified revenue streams. The growth is driven by both Bitcoin mining and AI colocation.
Bearish
- Negative Equity and High Debt Burden: The debt-to-equity ratio is -1.10, indicating negative shareholders' equity. This means liabilities exceed assets, a precarious financial structure. The company has $347.2M net loss in Q1 2026 and negative free cash flow of -$139.3M, raising concerns about solvency if growth stalls.
- Extreme Volatility and Recent Sharp Decline: With a beta of 5.50, CORZ is over 5x more volatile than the S&P 500. The stock fell 26.2% in the past month, significantly underperforming the market. This volatility can amplify losses and requires strict risk management, making it unsuitable for risk-averse investors.
- Unprofitable with Negative Operating Margins: Despite improving gross margins, operating margin remains deeply negative at -20.6% in Q1 2026. The company posted a net loss of $347.2M, and TTM free cash flow is -$471.2M. Profitability is uncertain and dependent on massive revenue growth from AI colocation.
- Valuation Relies on Speculative Growth Expectations: The trailing PS ratio of 14.52x is extremely high, though the forward PS of 1.19x implies aggressive revenue growth. If the anticipated revenue surge to $3.89B fails to materialize, the stock could face severe de-rating. The wide target spread ($27-$55) reflects high uncertainty.
CORZ Technical Analysis
The stock is in a strong uptrend over the past year, with a 1-year price change of +55.46%, significantly outperforming the S&P 500's +18.35%. Currently trading at $20.94, it sits at 46.1% of its 52-week range ($12.60-$30.46), indicating it has pulled back from the highs but remains well above the lows. This positioning suggests the stock is in a corrective phase within a broader uptrend, offering a potential entry point if the trend resumes. Short-term momentum has diverged sharply: the 1-month change is -26.22% versus a 3-month change of +5.49%, indicating a severe recent pullback that has erased much of the prior quarter's gains. The 1-month relative strength versus SPY is -26.53%, showing significant underperformance. This divergence could signal a temporary pullback within a longer-term uptrend, but the speed of the decline warrants caution. The 52-week high of $30.46 acts as key resistance, while the 52-week low of $12.60 provides support. A breakout above $30.46 would signal a resumption of the uptrend, while a breakdown below $12.60 would negate the long-term bullish structure. With a beta of 5.50, the stock is extremely volatile—over 5 times more volatile than the S&P 500—meaning it can amplify market moves significantly, requiring strict risk management.
Beta
5.50
5.50x market volatility
Max Drawdown
-40.7%
Largest decline past year
52-Week Range
$13-$30
Price range past year
Annual Return
+67.8%
Cumulative gain past year
| Period | CORZ Return | S&P 500 |
|---|---|---|
| 1m | -23.2% | -0.6% |
| 3m | +7.8% | +5.4% |
| 6m | +23.1% | +8.3% |
| 1y | +67.8% | +18.3% |
| ytd | +40.1% | +8.8% |
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CORZ Fundamental Analysis
Revenue has grown strongly, with the most recent quarter (Q1 2026) reporting $115.2 million, up 44.92% year-over-year from $79.5 million in Q1 2025. However, the trajectory shows deceleration from the 141.1% YoY growth in Q2 2024, and revenue has been volatile quarter-to-quarter. The Digital Asset Self-Mining segment generated $150.0 million in revenue, while Hosting Services contributed $20.1 million, indicating self-mining is the primary driver. The growth trend supports the investment case but is tied to Bitcoin prices and mining economics. The company is currently unprofitable, with a net loss of $347.2 million in Q1 2026 and a negative net margin of -301.3%. Gross margin improved to 25.8% in Q1 2026 from 10.3% a year ago, but operating margin remains deeply negative at -20.6%. The trajectory toward profitability is unclear, as the company has posted both large gains (Q4 2025 net income of $214.2 million) and losses, driven by non-cash items and Bitcoin price fluctuations. The balance sheet shows a debt-to-equity ratio of -1.10 (negative equity), indicating the company has more liabilities than assets, a high-risk financial structure. Free cash flow was -$139.3 million in Q1 2026, and the trailing twelve-month FCF is -$471.2 million, meaning the company is burning cash heavily. The current ratio of 1.15 suggests adequate short-term liquidity, but the negative equity and high debt levels pose significant financial risk.
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?
Since net income is negative (TTM net loss), we use the price-to-sales (PS) ratio as the primary valuation metric. The trailing PS ratio is 14.52x, while the forward PS (based on estimated revenue of $3.89 billion) is approximately 1.19x, implying the market expects massive revenue growth. The gap between trailing and forward PS suggests aggressive growth expectations. Compared to the Software-Infrastructure industry average PS ratio (not provided, but typically lower for hardware-heavy businesses), CORZ's trailing PS of 14.52x appears extremely high. However, the forward PS of 1.19x is much more reasonable, reflecting the anticipated revenue surge from AI colocation contracts. The premium/discount cannot be precisely quantified without industry data, but the forward multiple suggests the market is pricing in a dramatic revenue ramp. Historically, the PS ratio has ranged from 3.1x (Q4 2021) to 70.5x (Q3 2025), with the current 14.52x near the lower end of the recent range. This suggests the stock is not at historical extremes, but the wide range reflects the company's volatile earnings and evolving business model. The current PS is below the 2025 highs, potentially indicating a more reasonable entry point if the growth materializes.
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
Financial & Operational Risks: Core Scientific's balance sheet is precarious, with a debt-to-equity ratio of -1.10 indicating negative equity. The company burned $139.3M in free cash flow in Q1 2026 and $471.2M over the trailing twelve months, while net losses totaled $347.2M in Q1 2026 alone. The negative operating margin of -20.6% and reliance on non-cash items for profitability (e.g., Q4 2025 net income of $214.2M was driven by gains on digital assets) highlight the lack of sustainable earnings. Revenue concentration in Bitcoin mining (Digital Asset Self-Mining segment generated $150M vs. $20.1M from hosting) exposes the company to cryptocurrency price volatility, as evidenced by the wide swings in net income.
Market & Competitive Risks: The stock trades at a trailing PS of 14.52x, which is high relative to typical hardware-heavy infrastructure companies, though the forward PS of 1.19x reflects aggressive growth expectations. With a beta of 5.50, CORZ is extremely sensitive to market moves, and the recent 26.2% monthly decline shows how quickly sentiment can shift. The AI colocation market is competitive, with players like TeraWulf and others vying for contracts; any failure to secure large deals could derail the growth narrative. Regulatory risks around cryptocurrency mining (e.g., energy consumption rules) and AI data center permitting also pose threats.
Worst-Case Scenario: If the AI infrastructure pivot fails to generate expected revenue—due to execution delays, competitive losses, or a downturn in Bitcoin prices—the stock could fall to its 52-week low of $12.60, representing a 39.8% decline from the current price of $20.94. In this scenario, the company might face liquidity issues, given its negative equity and cash burn, potentially leading to dilutive financing or restructuring. The historical max drawdown of -40.74% suggests such a decline is plausible, and the bear-case analyst target of $27.00 still implies 28.9% upside, but that target may be overly optimistic if fundamentals deteriorate.
FAQ
The key risks are: 1) Financial instability: negative debt-to-equity of -1.10 and TTM free cash flow of -$471.2M, raising solvency concerns. 2) Execution risk: the AI colocation pivot may not generate expected revenue, leading to a de-rating. 3) Bitcoin price sensitivity: the mining segment is a major revenue driver, and a Bitcoin crash could severely impact earnings. 4) Extreme volatility: beta of 5.50 means the stock can swing wildly, and a 26.2% monthly decline has already occurred. The most severe risk is a failure to secure AI contracts, which could send the stock to the 52-week low of $12.60.
The 12-month forecast is bullish with a base case target of $27-$33.36 (analyst average $33.36), implying 28.9%-59.3% upside. The bull case targets $55 (analyst high) with a 25% probability, driven by successful AI colocation execution. The bear case targets $12.60 (52-week low) with a 25% probability, if the pivot fails or Bitcoin crashes. The most likely scenario (50% probability) is the base case, where revenue grows steadily but not explosively, and the stock appreciates moderately. The key assumption is that the company can execute its AI infrastructure expansion and achieve the revenue growth implied by forward estimates.
CORZ appears overvalued on trailing metrics, with a PS ratio of 14.52x, but potentially undervalued on forward estimates, with a forward PS of 1.19x based on expected revenue of $3.89B. The wide gap reflects the market's expectation of massive growth. Compared to the industry average (not provided, but typically lower for hardware-heavy businesses), the trailing multiple is high, but the forward multiple is reasonable if growth materializes. Historically, the PS has ranged from 3.1x to 70.5x, so the current 14.52x is near the lower end of the recent range, suggesting it is not at extreme levels.
CORZ is a high-risk, high-reward stock that could be a good buy for aggressive investors with a long-term horizon and high risk tolerance. The analyst consensus is Strong Buy with a 59.3% upside to the average target of $33.36, and the forward PS of 1.19x suggests reasonable valuation if the company achieves its revenue targets. However, the stock has extreme volatility (beta 5.50), negative equity, and heavy cash burn, so it is not suitable for conservative investors. A good buy only if you believe in the AI colocation pivot and can withstand potential 40% declines.
CORZ is more suitable for long-term investment (3-5 years) given its speculative nature and dependence on a multi-year AI infrastructure buildout. The stock's extreme volatility (beta 5.50) makes short-term trading risky, as evidenced by the 26.2% monthly decline. Long-term investors can ride out volatility and benefit from the potential revenue ramp, but they must have high risk tolerance. A minimum holding period of 3 years is recommended to allow the AI colocation strategy to materialize. The stock pays no dividend, so it is purely a capital appreciation play.
