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Macquarie Upgrades Core Scientific to Outperform After CoreWeave Merger Collapse

Macquarie boosts Core Scientific’s target price from $18 to $34, citing enhanced capacity leasing flexibility to AI clients after the failed CoreWeave deal.

Summary

Macquarie upgraded Core Scientific (CORZ) to outperform and raised its price target to $34, following the collapse of its planned merger with CoreWeave. Shares rose 4.5% to approximately $21.70. Analysts highlighted that the failure of the deal increases the company’s flexibility to lease its 1.5 GW power capacity, including 590 MW already leased to CoreWeave, to AI-focused clients. Jefferies maintained a buy rating with a $28 target, noting reduced capital expenditures and ongoing data center expansion.

Terms & Concepts
  • Gigawatt (GW): A unit of power equal to one billion watts, often used to measure large-scale energy capacity in industrial or data center operations.
  • Colocation: A service where businesses rent space and power in a data center to house their own servers or hardware.
  • High-performance computing: The use of powerful processors and parallel processing to perform complex calculations quickly, often applied in AI and scientific research.