Bernstein Remains Bullish on Core Scientific (CORZ) Even After the Shares Tumbled 30%

The slide means the stock is now available at a deep discount, the broker said in a research report Thursday.

After a 30% slide in bitcoin (BTC) mining stocks earlier this week, following a challenge by Chinese artificial intelligence (AI) startup DeepSeek to the narrative that miners have value as data center plays, Bernstein remains bullish on Core Scientific (CORZ).

However, the slide in Core Scientific stock makes the shares available at a deep discount, the brokerage said in a research note Thursday.

Core Scientific is the "leader of the pack" among AI-focused miners, boasting 1.3 gigawatt (GW) of available power supply and a 12-year AI agreement with CoreWeave, according to the note.

"Bitcoin miners have a 12-18 month finite window to build a hybrid data center business, while the hyperscaler capex remains consistent," wrote analysts led by Gautam Chhugani.

Bernstein said Core Scientific is set to deliver its first cluster of data centers in the first half of the year, and the company continues to acquire and develop new power sites.

"Despite 70% of its capacity being allocated to AI, the stock now trades closer to bitcoin mining multiples than data center multiples," the note said.

Bernstein rates Core Scientific shares at outperform with a price target of $17.

The stock was recently 3.8% higher at $11.90.