Core Scientific (CORZ) Is on the Cusp of Becoming a Major Force in AI Hosting, Initiated at Buy: Canaccord

The broker started coverage of the bitcoin miner with a buy rating and a $16 price target.

Bitcoin (BTC) miner Core Scientific (CORZ) could become a major player in artificial intelligence (AI) hosting, Canaccord Genuity said in a new report.

The firm initiated coverage of Core Scientific with a buy rating and a price target of $16, suggesting about 33% upside from Friday’s closing price. The stock rose 1.4% in early trading Monday.

Core Scientific’s transformative 12-year contract with hypersaler CoreWeave, announced in June, is a “game changer,” Canaccord said. The broker called it the “first and landmark ‘mega deal'” signed by a bitcoin miner to provide high-performance compute (HPC) data center hosting capacity.

A hyperscaler is a large-scale data center specializing in delivering huge amounts of computing power.

Canaccord highlighted three positive drivers for the stock: “Ramping revenue in AI hosting, better cash flow and potentially more site acquisitions on the way,” analysts led by Joseph Vafi wrote.

The price target comprises about $12 for the CoreWeave contract, $3 for the company’s remaining power supply that has been selected for AI hosting and around $1 for the bitcoin-mining business.

The company also has potential upside from mining. It still has about 230 megawatts (MW) of power that can be used for bitcoin mining, even after repurposing almost 500MW for AI hosting, the report noted.

The above is the detailed content of Core Scientific (CORZ) Is on the Cusp of Becoming a Major Force in AI Hosting, Initiated at Buy: Canaccord. For more information, please follow other related articles on the PHP Chinese website!