Core Scientific (CORZ) is back in focus after reporting first quarter 2026 results and outlining large scale AI focused data center expansions in Texas and Oklahoma, supported by multi billion dollar hosting contracts and recent financing.

The stock has been volatile around these Q1 2026 results, with a 1 day share price return of a 9.2% decline, a 30 day share price return of 32.9% and a 1 year total shareholder return that is very large, reflecting how investors are weighing earnings misses against the AI data center pivot and multiyear expansion plans.

If Core Scientific’s AI focused pivot has your attention, it can be useful to see what else is moving in the space by scanning 40 AI infrastructure stocks

With Q1 revenue at US$115.24 million, a quarterly loss of US$347.19 million and the stock trading around US$22.36, investors are asking a core question: is Core Scientific undervalued, or is the AI data center story already priced in?

Most Popular Narrative: 15.3% Undervalued

Against the last close of $22.36, the most followed narrative pegs Core Scientific’s fair value near $26.40, framing the AI data center pivot as the key swing factor.

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. Core Scientific’s ability to diversify its customer base and reduce reliance on CoreWeave as a primary client could improve margins and provide more stable revenue streams in the long term.

Want to see how this AI hosting story turns into numbers? Revenue ramps, margin shifts and a premium earnings multiple all sit behind that fair value line.

Result: Fair Value of $26.40 (UNDERVALUED)

However, there are clear pressure points, including reliance on the CoreWeave contract and the recent Chapter 11 restructuring, that could easily derail this AI hosting narrative.

Another View: Sales Multiple Flags Rich Pricing

The analyst narrative points to a fair value of $26.40 and labels Core Scientific as undervalued, but the current P/S of 19.9x tells a tougher story. That is far above peers at 4.3x, the US Software industry at 3.7x, and even the fair ratio of 5.8x, which together point to meaningful valuation risk if expectations cool.

Before leaning too hard on the AI data center upside, it is worth asking whether you are comfortable paying more than three times the fair ratio for each dollar of current sales.

Next Steps

With mixed signals on valuation and growth, the real question is how this balance of risk and reward stacks up for you. Move quickly, review the numbers, and weigh both sides of the story against the 1 key reward and 1 important warning sign

Looking for more investment ideas?

Once you have weighed up Core Scientific, do not stop there. Broaden your watchlist with fresh ideas that could better match your goals and risk comfort.

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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.