Despite a 30% plunge in Core Scientific’s stock this week, triggered by concerns over the value of bitcoin miners in light of AI advancements from DeepSeek, Bernstein remains optimistic about the company’s prospects. The decline in share price has resulted in what Bernstein calls a “deep discount” for investors.
Core Scientific is recognized as a frontrunner in the AI-integrated bitcoin mining space, boasting a 1.3 gigawatt (GW) power capacity and a 12-year deal with AI data center operator CoreWeave. Bernstein analysts, led by Gautam Chhugani, highlighted that bitcoin miners have a finite 12 to 18-month window to pivot towards hybrid data center models while maintaining steady capital expenditures from hyperscalers.
The company is progressing toward its first data center cluster rollout in 2025’s first half and continues to expand its power infrastructure. Despite trading closer to bitcoin mining valuations, rather than data centers, Core Scientific allocates 70% of its capacity to AI.
Bernstein has retained an outperform rating for Core Scientific’s stock, with a price target set at $17. Early trading showed a 3.8% increase in the stock, bringing it to $11.90.
