Core Scientific’s Strategic Shift: Betting Big on AI Infrastructure

Core Scientific US21874A1060

Following the collapse of a major acquisition deal, Core Scientific has executed a decisive strategic pivot. Instead of seeking a sale, the company is now channeling its efforts into an aggressive internal expansion, specifically targeting artificial intelligence (AI) and high-performance computing (HPC) data centers. This move raises a critical question: can the firm capitalize on this opportunity and live up to the heightened expectations now placed upon it by the market?

The current sentiment among financial analysts toward Core Scientific is predominantly favorable, with the consensus view reaching as high as a "Strong Buy" rating. This confidence stems from a series of recent upgrades. Notably, BTIG raised its assessment in early January 2026, Citizens followed in December 2025, and Macquarie initiated its positive stance as early as October 2025. These revisions signal broad-based approval of the company's new independent direction after the terminated takeover bid.

However, the market's appraisal presents a dual narrative. While some observers consider the stock significantly undervalued, suggesting potential upside of approximately one-third, a key valuation metric flashes a warning sign. Core Scientific's price-to-sales (P/S) ratio stands markedly above the industry average, at roughly 15.9x compared to a sector mean near 4.9x. This premium valuation introduces substantial risk if the anticipated growth fails to materialize. The shares currently trade at €15.60, reflecting a year-to-date gain of about 16%.

The New Roadmap and Its Inherent Challenges

The core of the company's revised strategy is a sharp refocus toward serving AI and HPC clients, leveraging its existing power pipeline as a key competitive advantage. In early January 2026, a major investor projected that Core Scientific could bring approximately 400 megawatts (MW) of new data center capacity online for customers during 2026. Furthermore, forecasts indicate that deals encompassing "over one hundred megawatts" could be announced within the next 90 days.

The shareholder decision to reject the nearly $9 billion acquisition offer from CoreWeave in late October 2025 has granted management the autonomy to pursue this path and potentially profit directly from the AI infrastructure boom. Analyst estimates provide a numerical foundation for this perspective. For the current year, a revenue decline is anticipated, to be followed by a powerful surge the next year—projections indicate a jump from around $379.5 million to approximately $834.8 million. Profitability is also expected to improve, with a positive earnings per share (EPS) forecast for this year (about $0.08), accelerating further the following year (around $0.32).

Consequently, the overall picture remains mixed. On one side are substantial capacity plans, anticipated contracts, and widespread analyst support. On the other is a demanding valuation that hinges entirely on successful customer acquisition and the flawless execution of expansion plans.

In the near term, several specific catalysts will likely determine the stock's trajectory: the confirmation of major contracts within the coming quarter, the pace at which the promised 400 MW of capacity is brought online, and early evidence that revenue and profit forecasts are translating into reality. The fulfillment of these conditions would validate the optimistic analyst scenarios; their absence would leave the equity vulnerable to downward pressure.