Bitcoin Miner Core Scientific Named A “Top A.I. Pick” At Bernstein

Bitcoin Miner Core Scientific Named A “Top A.I. Pick” At Bernstein

Analysts at Wall Street firm Bernstein have named Bitcoin (BTC) miner Core Scientific (CORZ) a “top A.I. pick” days after its stock fell 30%.

Core Scientific’s share price nose dived on Jan. 27 amid the market rout that was caused by the launch of a new app from Chinese artificial intelligence (A.I.) startup DeepSeek.

DeepSeek, which was reportedly created for only $6 million U.S. using older microchips, has challenged the notion that Bitcoin miners have a role to play in data centers.

However, Bernstein sees the sharp decline in Core Scientific’s share price as a buying opportunity, telling investors that the stock is now available at a deep discount.

According to Bernstein, Core Scientific is the “leader of the pack” among A.I.-focused Bitcoin miners, with 1.3 gigawatt (GW) of available power supply.

“Bitcoin miners have a 12–18 month finite window to build a hybrid data center business, while the hyperscaler capex remains consistent,” wrote Bernstein analyst Gautam Chhugani in a note to clients.

Bernstein said Core Scientific is on track to deliver on its first cluster of data centers in the first half of this year, and the company continues to develop new power sites across the U.S.

Chhugani adds that Core Scientific’s stock trades closer to Bitcoin mining valuations rather than data center valuations “despite 70% of its capacity allocated to A.I.”

Bernstein maintains a buy-equivalent “outperform” rating on Core Scientific's stock with a $17 U.S. price target.

The stock of Core Scientific is up 263% over the last 12 months and currently trades at $11.46 U.S. per share. For this week, the stock is down 27%.