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Core Scientific (CORZ) has drawn attention recently, with shares moving higher over the past week. Investors are taking note of the company’s ongoing performance and looking for signals in its recent market activity.

See our latest analysis for Core Scientific.

Core Scientific’s momentum is building again after a sharp pullback last month. The share price has jumped 14.7% over just the last week as investors grow more optimistic. However, it is worth noting that while the 90-day share price return stands at a healthy 17.7%, the total shareholder return over the past year is still negative. This suggests there is both recovery and risk in the story.

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With shares still trading at a notable discount to analyst price targets and recent volatility in mind, the key question now is whether Core Scientific offers genuine value here or if the market is already anticipating the company’s future growth.

Core Scientific’s last close of $16.89 sits notably below the most popular narrative’s fair value estimate of $27.65, suggesting sizable room for upside if narrative assumptions play out. This wide gap has market watchers asking what could drive such a re-rating and whether projected catalysts can push shares closer to the narrative’s target.

Core Scientific secured a major HPC contract with CoreWeave, with a total revenue potential of $8.7 billion over a 12-year term, significantly boosting future revenue compared to their current levels. The company is expanding HPC infrastructure capacity by reallocating resources from Bitcoin mining, adding new sites, and extending existing ones, expecting to drive future revenue growth as data center needs rise.

Read the complete narrative.

Want to see what’s fueling this bold valuation? The narrative’s math factors in a potential transformation from mining to data center powerhouse. But which surprising growth bets, margin forecasts, and future profit multiples generate such a premium fair value? Dive in and discover the driving forces analysts are banking on. These numbers could change how you view Core Scientific’s potential.

Result: Fair Value of $27.65 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, setbacks in executing their high performance compute expansion or a slowdown in client demand could quickly challenge Core Scientific’s path to recovery and growth.

Find out about the key risks to this Core Scientific narrative.

If you would rather draw your own conclusions or dig deeper into the numbers, it only takes a few minutes to shape your own story and perspective. Do it your way.

A great starting point for your Core Scientific research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CORZ.

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