Core Scientific (CORZ) is back in focus after announcing a long-term AI infrastructure agreement with AMD that targets up to 2.5 gigawatts of data center capacity and a 15-year high performance computing colocation deal.

The AMD agreement comes as Core Scientific’s share price has eased in the short term, with a 1-day share price return of 5.0% lower and a 7-day return of 8.92% lower. However, the year-to-date share price return of 29.58% and 1-year total shareholder return of 63.79% still point to positive momentum building over a longer window.

If you are assessing how this AI-focused move fits into the wider opportunity set, it can be useful to see what else is out there in similar themes through a curated screener of 55 AI infrastructure stocks

Core Scientific now has a large AI infrastructure opportunity and a share price that has already moved sharply over the past year. The next step is to see whether that growth story is already fully reflected in today’s valuation.

Most Popular Narrative: 42.2% Undervalued

Core Scientific’s most followed valuation narrative pegs fair value at $35.86 per share compared with a last close of $20.72. This frames the stock as materially undervalued based on that work.

The analysts have a consensus price target of $35.86 for Core Scientific based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $55.0, and the most bearish reporting a price target of just $25.0.

Want to understand what sits behind that gap between fair value and today’s price? The narrative leans on rapid revenue expansion, a sharp swing into profitability and a future earnings multiple usually reserved for mature software leaders. Curious which specific growth and margin assumptions are doing the heavy lifting here? The full breakdown shows exactly how those forecasts stack up over time.

Result: Fair Value of $35.86 (UNDERVALUED)

However, Core Scientific’s story can change quickly if the heavy Q4 2024 loss and its reliance on large contracts like CoreWeave or AMD do not translate into durable cash flow.

Another View On Core Scientific’s Valuation

The analyst fair value work presents Core Scientific as undervalued at $35.86 per share, while the current P/S of 15.1x suggests a different perspective. It stands well above the US Software industry at 3.6x, peers at 7.6x and even the 8.5x fair ratio. That gap indicates higher valuation risk if expectations cool.

To see how these numbers fit together in practice, including how much of today’s price is tied to rich revenue multiples, take a closer look at the See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Given the mix of optimism and caution around Core Scientific, it makes sense to review the numbers for yourself and move quickly to form your own view by checking the 1 key reward and 3 important warning signs.

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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.