- Buy Rating for Core Scientific
- Significance of the CoreWeave Contract
- Factors Influencing Core Scientific's Stock Growth
Brokerage firm Canaccord has initiated coverage of Core Scientific, one of the largest Bitcoin mining companies, with a 'buy' rating.
Buy Rating for Core Scientific
Brokerage firm Canaccord has given Core Scientific a 'buy' rating due to the company's prospects of becoming a significant player in the field of artificial intelligence (AI) hosting.
Significance of the CoreWeave Contract
According to Canaccord, the 12-year contract that Core Scientific signed with hyperscaler CoreWeave in June is a pivotal moment for the industry. This contract is considered the first major deal between a mining company and a high-performance computing (HPC) provider for AI hosting.
Factors Influencing Core Scientific's Stock Growth
Canaccord analysts highlight three positive drivers for Core Scientific's stock: ramping revenue in AI hosting, improved cash flow, and potential new site acquisitions. The price target for the stock is $16, with $12 attributed to the CoreWeave contract, $3 to additional AI hosting power supply, and $1 to the Bitcoin mining business.
Core Scientific receives high marks from Canaccord analysts due to its strategic approach and potential in AI hosting.
