Is CORZ a good stock to buy? We came across a bullish thesis on Core Scientific, Inc. on Elliot’s Musings’s Substack by Elliot. In this article, we will summarize the bulls’ thesis on CORZ. Core Scientific, Inc.’s share was trading at $26.85 as of May 29th. CORZ’s trailing and forward P/E were 77.08 and 166.67 respectively according to Yahoo Finance.
Core Scientific, Inc. provides infrastructure for high-density colocation services and digital asset mining in the United States. CORZ delivered a strong first quarter of 2026 that reinforced its position as one of the leading AI infrastructure developers, even as investors remain focused on the timing of a second hyperscaler contract. The company surpassed expectations operationally, reaching 243MW of billing capacity that now generates more than $350 million of annualized colocation revenue, while successfully closing its $3.3 billion CoreWeave project bond.
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Importantly, management increased its long-term cash gross margin target on the CoreWeave contract to 80%-85%, reflecting improved visibility from actual operating experience and implying meaningfully higher future profitability. While the expiration of a previously exclusive 500MW hyperscaler negotiation disappointed the market, the underlying demand picture remains compelling, with three additional hyperscalers now actively engaged on the same sites and the original customer still participating in discussions.
The investment thesis centers on CORZ’s ability to leverage its differentiated platform, active construction pipeline, and recently secured capital to convert this demand into new contracts. Unlike many competitors, the company can invest ahead of signed agreements, accelerating delivery timelines and creating a significant competitive advantage in a market where hyperscalers urgently need near-term capacity.
As Bitcoin mining is rapidly phased out, the business is transforming into a pure-play AI colocation provider, eliminating loss-making operations and improving overall margins. At full delivery of the 590MW CoreWeave contract, management’s disclosed economics imply roughly $850 million of annualized colocation revenue and substantial cash earnings potential.
A second customer contract remains the most important catalyst, and a 300MW-500MW agreement could drive a significant re-rating of the shares, while continued execution on the CoreWeave ramp provides a solid foundation for long-term value creation.
Previously, we covered a bullish thesis on Applied Digital Corporation (APLD) by DoU92 in December 2024, which highlighted the company’s AI infrastructure strategy, scalable HPC data center platform, and ability to benefit from rising AI computing demand. APLD’s stock price has appreciated by approximately 396.63% since our coverage. Elliot shares a similar view but emphasizes on Core Scientific, Inc.’s (CORZ) hyperscaler colocation growth, expanding margins, and customer contract catalysts.
Core Scientific, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held CORZ at the end of the first quarter which was 76 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.
Disclosure: None.
