CORZ Stock Forecast & Price Target

Core Scientific Inc. demonstrates a positive outlook due to its stable revenue generation from existing high-performance computing (HPC) contracts, which are not encumbered by project financing, thereby allowing the company to potentially raise up to $4 billion for future infrastructure growth. Additionally, with a significant neo-cloud contract and expertise in large-scale HPC capacity development, Core Scientific is well-positioned to attract new customers and capture higher market demand for AI-capable data centers in the upcoming years. The anticipated acceleration of infrastructure development, along with the favorable hosting agreements and increasing need for HPC services, further supports a robust growth trajectory for the company.

Core Scientific Inc. has revised its revenue projections for 2025 to $325.8 million, a considerable decline from the earlier estimate of $428.2 million, driven by multiple operational challenges and market conditions. Key factors contributing to this negative outlook include the inability to secure additional megawatts at competitive pricing, deteriorating customer relationships with suppliers, and the risk of technological obsolescence in their GPU fleet, all of which hamper growth and profitability prospects. Additionally, the company's recent monthly revenue of $81.1 million fell significantly short of expectations, further underscoring challenges in executing its business strategy amid a competitive and regulatory landscape.