Core Scientific Remains Top AI Selection in Bitcoin Mining, Says Bernstein, Even Amid DeepSeek Challenges

Bernstein has maintained a positive outlook on Core Scientific (CORZ) even after the company’s stock plummeted 30% earlier this week, following skepticism from Chinese AI startup DeepSeek over the value of bitcoin miners as data centers. According to a research note released Thursday, the stock is now trading at a significant discount.

Core Scientific is considered a leader in AI-driven bitcoin mining, boasting 1.3 gigawatts (GW) of power capacity and a notable 12-year AI partnership with CoreWeave. Analysts led by Gautam Chhugani explained that bitcoin miners have a limited 12-18 month window to diversify into hybrid data center businesses, while hyperscalers’ capital expenditures remain steady.

The company is on track to launch its first cluster of data centers in the first half of 2025 and continues to expand its power infrastructure. Bernstein pointed out that, despite the stock’s recent decline, Core Scientific’s valuation now aligns more closely with traditional bitcoin mining rather than the data center sector, despite AI using 70% of the company’s available capacity.

Bernstein continues to have an outperform rating on Core Scientific, with a price target of $17 per share. The stock saw an early rise of 3.8%, reaching $11.90.