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Why Core Scientific (CORZ) Is Down 8.9% After Massive AMD AI Data Center Deal And $1.16 Billion Loss

Simply Wall St · 3d ago
  • In late July 2026, Core Scientific, Inc. reported Q2 2026 revenue of US$164.2 million alongside a net loss of US$1.16 billion, and announced a large‑scale AI infrastructure partnership with Advanced Micro Devices, Inc. involving up to 2.5 gigawatts of potential data center capacity and related stock warrants for Advanced Micro Devices, Inc.
  • Core Scientific, Inc. also added veteran technology executive Mark W. Adams to its expanded seven‑member Board of Directors, strengthening oversight as the company accelerates its shift toward AI‑focused data center infrastructure in collaboration with major semiconductor and enterprise clients.
  • Next, we’ll examine how the expansive AMD AI infrastructure partnership could reshape Core Scientific’s investment narrative around HPC-led growth.

Find 55 companies with promising cash flow potential yet trading below their fair value.

Core Scientific Investment Narrative Recap

To own Core Scientific today, you have to believe its pivot from Bitcoin mining to high performance computing can eventually offset large, recurring losses, while it manages heavy capital needs and customer concentration. The AMD partnership and Q2 2026 results highlight this tension: a high profile AI capacity deal on one side, and a US$1.16 billion quarterly net loss and thin cash runway risk on the other. The near term catalyst remains execution on contracted AI workloads; the key risk is still financial resilience if that build out stalls.

Among the latest announcements, the AMD AI infrastructure agreement is most relevant. It puts Core Scientific in line to support up to 2.5 gigawatts of AI focused data center capacity for AMD’s ecosystem, with more than 500 megawatts expected to come online from 2027 and stock warrants issued to AMD at market prices. For investors watching the CoreWeave contract and broader customer diversification, this AMD deal could become a second, critical pillar of the HPC story.

But against this AI build out, investors should be aware that the company’s persistent net losses and limited cash runway could...

Read the full narrative on Core Scientific (it's free!)

Core Scientific's narrative projects $2.4 billion revenue and $421.6 million earnings by 2029. This requires 75.4% yearly revenue growth and about a $2.0 billion earnings increase from -$1.6 billion today.

Uncover how Core Scientific's forecasts yield a $35.86 fair value, a 73% upside to its current price.

Exploring Other Perspectives

CORZ 1-Year Stock Price Chart
CORZ 1-Year Stock Price Chart

Before this AMD news, the most optimistic analysts expected revenue to reach about US$3.2 billion and earnings near US$1.7 billion by 2029, which is far more bullish than consensus and assumes CoreWeave concentration risk fades rather than grows; the new partnership could either reinforce that upbeat view or force you to rethink how realistic those numbers really are.

Explore 3 other fair value estimates on Core Scientific - why the stock might be worth just $35.86!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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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.