In a report released yesterday, Joseph Vafi from Canaccord Genuity maintained a Buy rating on Core Scientific Inc (CORZ – Research Report), with a price target of $17.00.
Joseph Vafi has given his Buy rating due to a combination of factors related to Core Scientific Inc’s strategic positioning and partnerships in the AI-centric data center hosting space. Core Scientific’s largest customer, CoreWeave, has recently secured a significant deal with OpenAI, valued at nearly $12 billion, which underscores the strong demand for AI cloud services. This partnership not only enhances CoreWeave’s revenue diversification but also positively impacts Core Scientific, given their substantial revenue ties.
Moreover, despite market chatter about Microsoft potentially adjusting its data center spending, CoreWeave has reported no reduction in demand from Microsoft, which remains a major customer. Microsoft’s ongoing commitment to an $80 billion annual data center budget and CoreWeave’s successful IPO filing further support the stability and growth prospects for Core Scientific. These developments, combined with Core Scientific’s plans to diversify its customer base, contribute to Vafi’s optimistic outlook and Buy rating.
In another report released on March 11, Compass Point also reiterated a Buy rating on the stock with a $20.00 price target.
CORZ’s price has also changed moderately for the past six months – from $10.390 to $8.950, which is a -13.86% drop .
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