Core Scientific is well-positioned to deliver AI data center scale within the next one to three years, according to a recent report. Bernstein, a brokerage firm, stated that while legacy data centers can eventually provide the same scale, Core Scientific can do so much faster.
The brokerage firm has given Core Scientific an outperform rating with a price target of $17. The company, known for its bitcoin mining operations, recently secured a 200-megawatt AI deal with CoreWeave, with the potential to scale up to 300 megawatts in three years. CEO Adam Sullivan’s conversation with Bernstein highlighted Core Scientific’s advantages, including access to suitable sites and power, less competition in the short-term data center market, and the ability to build a strong data center team quickly.
While legacy data centers can match Core Scientific’s scale, they require more time to do so. The report emphasized the importance of speed to market in the competitive AI landscape, where CoreWeave operates. The demand for computing power from AI companies is growing rapidly, yet many face challenges in accessing the necessary infrastructure. Bitcoin miners like Core Scientific have an advantage due to their existing resources.
Core Scientific’s partnership with CoreWeave reflects a trend of AI firms collaborating with bitcoin miners to meet their computing needs. Despite concerns about counterparty risk and potential overbuilding, Bernstein views Core Scientific positively, citing the company’s strategic position in the market.
The brokerage firm maintains an outperform rating on Core Scientific’s stock, setting a price target of $17. At the time of publication, the stock was trading at around $10. Private equity firms are also taking notice of the value in partnering with bitcoin miners for AI computing, following Core Scientific’s successful deal with CoreWeave.
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