Bernstein remains optimistic about Core Scientific (Corz) even after the actions dropped 30% earlier this week while the startup of Chinese artificial intelligence (AI) Deepseek challenged the idea that Bitcoin minors (BTC) had value as the data center plays.
The slide means that the stock is now available at a major discount, the broker said in a research report on Thursday.
Core Scientific is the “Pack leader” of minors focused on the AI, according to the report, with 1.3 gigawatt (GW) of available food and a 12 -year AI agreement with Coreweave.
“Bitcoin minors have a finished window of 12 to 18 months to build a hybrid data center company, while the CAPEX hyperscaler remains coherent,” the analysts led by Gautam Chhugani wrote.
Bernstein said that Core Scientific is on the right track to deliver its first group of data centers in the first half, and the company continues to buy and develop new electricity sites.
The stock is now negotiated closer to Bitcoin operating assessments rather than assessments of the data center, “despite 70% of its capacity allocated to AI”, according to the report.
Bernstein has an outperformance note on the actions of Core Scientific with a price target of $ 17.
The share was 3.8% higher at $ 11.90 at the start of negotiations.
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