Core Scientific Inc. (NASDAQ: CORZ) has demonstrated a significant shift in investor sentiment this week, marked by a robust rise in momentum and a constructive upgrade from BTIG analyst Gregory Lewis. This technical and fundamental turnaround follows the stabilization of market concerns about the company’s previously proposed merger with CoreWeave Inc. (NASDAQ: CRWV), which shareholders ultimately rejected.
The market’s response to the merger rejection has been markedly positive, as demonstrated by Core Scientific’s momentum metrics soaring from a bearish state to a highly bullish one over the course of a week. Benzinga Edge data highlights a spike in the stock’s momentum score from 16.34 to 81.98 percentiles week-over-week, revealing a strong relative increase in price strength compared to other equities.
Momentum, in this context, is a key quantifiable indicator that reflects the stock’s price movement intensity and volatility across various time frames against its peers. The strong surge in Core Scientific’s technical signals is consistent across short-term, medium-term, and long-term price trend indicators, painting a cohesive picture of rising investor confidence and suggesting an upward trajectory extending over months, quarters, and the past year.
A Clearer Path Forward After Merger Rejection
Analyst Gregory Lewis of BTIG articulated a view that the market uncertainty clouding Core Scientific has dissipated following the rejection of its merger bid with CoreWeave. Upgrading the stock rating from Neutral to Buy and setting a price target of $23, Lewis emphasized that the "dust has settled" after shareholders’ decisive vote against the deal. The rejection, he argues, frees Core Scientific to pursue its strategic objectives without the merger integration risks that had dampened sentiment.
While Core Scientific has secured contracts aimed at transforming power infrastructure from cryptocurrency mining toward high-performance computing (HPC), the company’s shares have lagged the broader sector, reflecting investor hesitation during this uncertain period. BTIG’s revised outlook anticipates that the company will accelerate its momentum in 2026, capitalizing on its powerful infrastructure assets to expand HPC colocation contracts — a strategic pivot that could elevate Core Scientific’s position in the computing market.
Recent Stock Performance and Market Activity
Core Scientific’s stock performance corroborates this shift in sentiment. Over the past six months, the stock appreciates by approximately 26.40%, and it maintained comparable gains over the past year, rising 26.03%. Year-to-date in 2026, the stock has posted a 16.44% increase, reflecting steadier investor confidence early in the current year.
On the most recent trading days, Core Scientific closed at $17.14 per share, up 2.76% on Friday, though saw a slight dip of 0.99% in pre-market trading the following Monday. These intraday fluctuations reflect ongoing market dynamics but do not detract from the broader positive momentum trend.
Technical Indicators Reinforce Positive Outlook
Benzinga Edge Stock Rankings further affirm Core Scientific’s improved market standing, particularly in momentum scores and price trend metrics. The comprehensive data analysis reveals consistent strength across multiple analytic horizons, offering a data-driven foundation for investor confidence. While the momentum score is an important metric, it should be understood within the broader spectrum of technical indicators that collectively signal a favorable stock trajectory.
Considerations and Risks
- The company’s future growth projections, particularly in HPC colocation contracts, hinge on successful execution and market demand within the computing infrastructure sector.
- Although the merger rejection has removed one layer of uncertainty, the possibility of future strategic shifts or corporate actions remains, which may influence stock performance.
- Market volatility and broader sector dynamics in crypto-related and HPC markets can impact Core Scientific’s competitive landscape and investor sentiment.
- Price movements in the short term continue to reflect sensitivity to market news and trading behaviors, suggesting potential fluctuations despite the positive momentum.
Investors and market observers should weigh these factors alongside the promising technical and fundamental developments as they evaluate Core Scientific’s prospects.
Disclaimer: This article is for informational purposes and reflects analysis based on available data. It does not constitute investment advice. Market conditions can change rapidly, affecting stock prices and outlooks.