February 2, 2026
Finance

Core Scientific's Shift to AI Infrastructure Sparks Market Optimism

Analysts Upgrade Targets as the Company Moves Away from Bitcoin Mining to High-Performance Computing Leasing

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Summary

Core Scientific Inc. has experienced a marked improvement in market sentiment, highlighted by a significant rise in its momentum score. This shift follows strategic moves to refocus its business model from cryptocurrency mining to high-performance computing (HPC) services tailored for artificial intelligence workloads. Recent analyst upgrades and positive technical indicators support a growing bullish outlook for the company as it builds momentum in AI infrastructure leasing.

Key Points

Core Scientific’s momentum score increased significantly from 78.59 to 87.83, indicating improved market sentiment.
Keefe, Bruyette & Woods raised Core Scientific’s price target to $25 and assigned an 'Outperform' rating based on its pivot to leasing high-performance computing capacity.
The company is transitioning its infrastructure from bitcoin mining to AI-focused HPC hosting, in partnership with CoreWeave Inc.
Analyst upgrades and stock performance indicate growing investor confidence amid expected pipeline developments and colocation deals.

Core Scientific Inc. (NASDAQ: CORZ) has exhibited a notable transformation in market perception in recent trading sessions, as reflected by a striking increase in its momentum score. Over the course of a single week, this metric ascended substantially from a previous score of 78.59 to an optimistic 87.83, suggesting enhanced investor confidence and positive price movement dynamics.

This surge coincides with a favorable reassessment by Keefe, Bruyette & Woods (KBW), which elevated its price target for Core Scientific from $19 to $25. This upgrade was highlighted in financial reporting, underscoring KBW's reaffirmation of the company’s strong forward prospects. KBW assigned an 'Outperform' rating to Core Scientific, drawing attention to the firm's strategic pivot away from bitcoin mining operations toward leasing high-performance computing capacity.

Central to this transformation is Core Scientific’s partnership with CoreWeave Inc. (NASDAQ: CRWV), a company specializing in HPC infrastructure optimized for artificial intelligence workloads. The shift in Core Scientific’s business model involves reallocating power resources traditionally used for cryptocurrency mining into AI-focused HPC hosting environments tailored to meet burgeoning demand within this sector.

Data obtained from Benzinga Edge’s stock ranking system further supports this upbeat market status. Core Scientific attained a triple-green status, indicating strength in its price trends across short-term, medium-term, and long-term timeframes. This pattern of consistent upward movement signifies robust momentum and suggests a well-supported bullish trend underpinning the stock.

Although current valuations primarily reflect existing leasing agreements with CoreWeave, analysts anticipate that upcoming pipeline developments and new colocation contracts could provide additional catalysts for growth. These prospects place Core Scientific in a favorable position as it refines and expands its HPC services aligned with AI infrastructure demands.

Analyst support extends beyond KBW, with BTIG analyst Gregory Lewis recently upgrading Core Scientific's rating to 'Buy.' Lewis noted that the company has positioned itself advantageously following the resolution of a failed merger proposal with CoreWeave, forecasting a robust operational start as it moves into 2026.

Market performance data underscores this positive outlook. Core Scientific's shares have climbed approximately 12.51% in 2026 to date, with more substantial gains of 31.79% and 45.90% recorded over the past six months and past year, respectively. Despite these appreciable gains, recent price action shows some volatility. The stock closed Friday down 4.51% at $17.99 per share and experienced a 2.95% decline during premarket trading on the following Monday.

These price fluctuations illustrate the inherent volatility accompanying Core Scientific's ongoing business transition and market repositioning. Nevertheless, the underlying momentum and positive analyst sentiment provide a supportive backdrop for potential future appreciation once the company advances its AI infrastructure initiatives and expands its HPC leasing footprint.

Overall, Core Scientific's trajectory reflects a deliberate and strategic realignment of its core competencies toward AI-driven computing solutions. This move aims to capitalize on increasing demand for sophisticated HPC resources within the AI sector, fostering a more diversified and growth-oriented revenue base. As the company continues to execute on this pivot, investor interest and market indicators suggest an optimistic near- to medium-term outlook.

Risks
  • Recent stock price volatility including a 4.51% drop on Friday highlights market fluctuations that may affect short-term investor sentiment.
  • The company’s current valuation mostly reflects existing leases, and future growth relies on successful deployment of new AI infrastructure contracts.
  • Uncertainty remains due to prior failed merger attempts which could influence strategic direction and operational stability.
  • Market dynamics in cryptocurrency and HPC sectors may present external risks to Core Scientific’s new business focus.
Disclosure
Education only / not financial advice
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CORZ - positive CRWV - neutral
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