Core Scientific Is Firing on All Cylinders as Analysts Approve Its Expansion Plans

Core Scientific (CORZ) started off as a Bitcoin (BTCUSD) mining company, trying to carve out a space for itself in a world where alternative assets were gaining attention. Little did the company know that the infrastructure it had built for BTC mining would one day come in handy for something entirely different: artificial intelligence (AI) and high-performance computing (HPC). 

Bitcoin mining requires two critical components — cheap power capacity and high-density rack infrastructure. Interestingly, this is what HPC in the AI era also needs. So, when hyperscalers started investing heavily in AI infrastructure, companies like Core Scientific decided to pivot to a different business model in data-center capacity for AI and HPC workloads.

This pivot has helped CORZ stock gain 114% over the past 52 weeks, and the uptrend could continue if recent analyst commentary is anything to go by. BTIG analyst Gregory Lewis just raised the price target on CORZ from $23 to $33, helping trigger another rally in shares to all-time highs. This optimism comes on the back of the company's latest earnings report, with investors gaining clarity on Core Scientific's future plans and tenant diversification.

About Core Scientific Stock

Core Scientific offers high-density colocation infrastructure and digital asset mining services across the United States. The company provides data-center space, cooling, power, security, facilities operations, and other services to support workloads. Core Scientific was incorporated in 2017 and is headquartered in Dover, Delaware.

CORZ stock has significantly outperformed the S&P 500 ($SPX) over the past year. The broader index has delivered returns of around 24% while Core Scientific has more than doubled over the same period. The upward momentum has continued this year as well, with CORZ stock up about 58% year-to-date (YTD) versus the S&P 500's gain of roughly 8%. 

The stock isn’t cheap, with a forward price-to-earnings (P/E) ratio of 219.8 times and a forward price-to-sales (P/S) ratio of 24.8 times. These numbers only make sense when one looks at the firm's high-growth projections. The company is expanding its leasable capacity to 3 gigawatts (GW), aided in part by the Polaris acquisition. To reduce risk, Core Scientific has also been working on tenant diversification, with revenue concentration down from 100% at the end of fiscal 2025 to 67% in the fiscal first quarter of 2026.

Core Scientific Posts Mixed Earnings

Core Scientific announced Q1 2026 earnings on May 6. The firm reported revenue of $115.2 million, which was up from $79.5 million in the same quarter last year. A big chunk of those sales — $77.5 million to be precise — came from colocation revenue, which was up from $8.6 million in Q1 2025. Digital asset self-mining revenue went down from $67.2 million in Q1 2025 to $30.1 million in Q1 2026.

The company is now generating revenue from 243 megawatts of capacity, with 200 megawatts expected to make money in the coming months. On the back of this opportunity, the company also reported that it closed on a $3.3 billion capital raise, which will be used to fund future growth and customer acquisition. 

What Are Analysts Saying About Core Scientific Stock?

Ahead of the earnings report on May 6, Keefe Bruyette increased its price target on CORZ stock from $25 to $28 while maintaining an “Outperform” rating. This positive shift in analyst sentiment before earnings signaled better results ahead for the company. On April 13, Bernstein analyst Gautam Chhugani also maintained a “Buy” rating on the stock with a $24 price target. 

Based on 18 Wall Street analysts with coverage, CORZ stock carries a consensus “Strong Buy” rating. The mean price target of $28.92 suggests 27% potential upside from current levels. Meawhile, the highest price target of $37 reflects potential upside of 63% over the next 12 months.