We came across a bullish thesis on Core Scientific, Inc. on Value & Momentum Portfolio by Denis D.’s Substack. In this article, we will summarize the bulls’ thesis on CORZ. Core Scientific, Inc.’s share was trading at $18.09 as of February 11th. CORZ’s trailing and forward P/E were 77.08 and 29.15 respectively according to Yahoo Finance.
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Core Scientific, Inc. (CORZ) has evolved from a traditional Bitcoin miner into an emerging AI infrastructure platform, and the market is increasingly valuing it on the potential of its high-performance computing (HPC) transition rather than its legacy fundamentals. Originally founded in 2017, the company now operates across Digital Asset Self-Mining, Digital Asset Hosted Mining, and HPC Hosting, leveraging approximately 1,317 MW of contracted power capacity across key U.S. states.
Its strategic partnership with CoreWeave, a leading AI hyperscaler, positions Core Scientific as a critical infrastructure provider in the rapidly expanding AI data center ecosystem. While recent earnings have reflected revenue declines and negative free cash flow as the company pivots away from mining, investors appear focused on the long-term value creation embedded in converting power capacity to recurring, high-margin HPC hosting revenue. The rejection of CoreWeave’s reported $9B acquisition offer underscores management’s confidence in the standalone upside of its AI-focused transformation.
Analyst sentiment has turned constructive, with multiple upgrades and price targets ranging from the low $20s to $30+, reinforcing the view that successful execution could materially rerate the stock. Recent unusual options activity, including aggressive call buying in early 2026 expiries, signals institutional positioning for further upside. Technically, shares have rebounded sharply from recent lows and are consolidating with improving momentum.
If Core Scientific successfully scales its HPC hosting platform and secures additional hyperscale customers, the transition could unlock substantial recurring cash flows and position the company as a leveraged beneficiary of sustained AI infrastructure demand, offering asymmetric upside relative to current levels.
Previously, we covered a bullish thesis on Applied Digital Corporation (APLD) by DoU92 in December 2024, which highlighted the company’s AI-focused data center expansion, scalable HPC infrastructure, improving profitability, and undervaluation with significant upside potential. APLD’s stock price has appreciated by approximately 284.55% since our coverage. Denis D. shares a similar but emphasizes on Core Scientific’s large-scale power capacity and HPC transition.
Core Scientific, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held CORZ at the end of the third quarter which was 78 in the previous quarter. While we acknowledge the risk and potential of CORZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CORZ and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
