Core Scientific (CORZ) Leans On CoreWeave And AMD, Is The Stock Cheap?

Recent analyst commentary on Core Scientific (CORZ) has focused on the new high performance computing agreement with CoreWeave and active partnerships with AMD, which together are shaping expectations for future revenue streams.

Core Scientific shares closed at US$14.46, and despite a 6.99% 1 day share price gain, the 90 day share price return is down 30.97% and the 1 year total shareholder return has declined 26.51%. This suggests that recent enthusiasm around the CoreWeave and AMD agreements is arriving after a period of fading momentum.

Scan how other AI infrastructure and crypto mining players are pricing in similar contract risks by comparing Core Scientific against our hand picked 94 AI infrastructure stocks.

Core Scientific now has contracts that many peers would like, yet the share price is still digging out from a double digit 12 month decline. Is this a strong platform that is mispriced, or is enthusiasm already baked in?

Most Popular Narrative: 57% Undervalued

Against Core Scientific's last close of $14.46, the most followed narrative anchors fair value at $33.90. This frames the current share price as a steep discount and places emphasis on the contracts and capital structure behind that number.

The improved balance sheet following significant debt restructuring and raising $625 million through a convertible note offering at 0% interest rates positions the company to fund future growth initiatives with lower interest costs, improving net margins.

Strategic hires of data center professionals enhance execution capabilities, which may lead to increased operational efficiencies and could positively impact earnings as the company expands its data center business.

See why 61 investors see Core Scientific as 57% undervalued.

Result: Fair Value of $33.90 (UNDERVALUED)

Still, the story around Core Scientific can change quickly if reliance on CoreWeave becomes a problem or if the shift away from hosted mining lasts longer than bulls expect.

Find out about the key risks to this Core Scientific narrative.

Another View: What The Market Is Paying For Core Scientific

Those fair value narratives paint Core Scientific as heavily discounted, yet the market is already paying a rich P/S of 10.5x. That is far above the US Software sector at 3.9x and the peer average at 3x. It is also well ahead of a 5.4x fair ratio that the market could potentially move toward over time.

If expectations around AI contracts or profitability reset, that gap leaves less room for error than the 57% undervalued story suggests. Which version of Core Scientific's future are you most comfortable underwriting?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed signals around Core Scientific can feel confusing, so move quickly to weigh the full set of facts and build your own conviction using the 1 key reward and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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