With a Buy rating on Monday, Jefferies started covering Core Scientific (CORZ, Financial), noting the bitcoin miner's strategy shift toward high-performance computing and its potential to tap into expanding demand for artificial intelligence (AI) infrastructure.
Aiming at broadening its income sources beyond bitcoin mining, Jefferies analyst Jonathan Petersen underlined the company's continuous shift to data center hosting. Core Scientific just extended its 12-year hosting contract with hyperscaler CoreWeave, which Petersen thinks might be a major driver.
"We expect that many big tech companies will be closely watching the CoreWeave developments and successful execution will convince decision makers to sign future development leases with CORZ," Petersen wrote in a letter to clients. With further announcements expected by year's end, he also expressed hope regarding Core Scientific's ability to expand its tenant base to include other hyperscalers.
Monday after the favorable press, Core Scientific's shares increased almost five percent. With infrastructure for AI-driven computing needs among growing demand from technology companies, the company's strategic shift towards AI-related hosting might help it to be a major participant in the evolving data center scene.
