10 AI Stocks on the Market’s Radar

8. Core Scientific, Inc. (NASDAQ:CORZ)

Number of Hedge Fund Holders: 78

Core Scientific, Inc. (NASDAQ:CORZ) is one of the 10 AI Stocks on the Market’s Radar. On December 18, Citizens upgraded the stock from Market Perform to “Market Outperform” with a price target of $30.00. Firm analysts cite robust HPC growth upside and growth prospects for CORZ.

“We are upgrading the shares of Core Scientific to Market Outperform from Market Perform and are establishing a price target of $30 per share, which represents ~19x estimated 2027 EV/EBITDA, reflecting the company’s robust growth prospects.”

The firm believes that Core Scientific’s power pipeline is robust enough to secure additional HPC lease agreements beyond CoreWeave. This will not only allow it to capture the booming demand for HPC infrastructure while competitors struggle with power constraints, but also reinforce its position in the evolving data center landscape.

Even though CORZ faced a failed merger with cloud computing firm CoreWeave, analyst Greg Miller is of the view that Core Scientific can secure more favorable contract terms as it deepens its deal making with AI firms and other clients.

“We believe deals that have been announced subsequent to the termination of the CoreWeave deal demonstrate that value creation favors suppliers of data center capacity, with more favorable terms being disclosed with each passing contract signing.”

The firm believes Core Scientific remains “undervalued.”

Core Scientific, Inc. (NASDAQ:CORZ) has transitioned into an AI business by leveraging advanced infrastructure and expertise in HPC (high-performance computing).