Core Scientific (CORZ) Surges 12.87% on AI Pivot, Merger Hopes as Share Price Hits Monthly High

The share price rose to its highest level so far this month, with an intraday gain of 5.79% on Oct. 29. Core Scientific (CORZ) has climbed 12.87% over four consecutive sessions, marking a rebound amid strategic shifts toward AI infrastructure and a pending merger with CoreWeave. The rally follows a sharp reversal from earlier declines driven by challenges in its cryptocurrency mining operations.

The stock’s surge reflects investor optimism about Core Scientific’s pivot to high-density colocation (HDC) services for AI and high-performance computing. Q3 2025 financials highlighted a 14.9% year-over-year revenue drop, with Bitcoin mining output falling 55%, but the company reported narrowing net losses and increased capital expenditures of $244.5 million to expand its HPC hosting capabilities. A proposed merger with CoreWeave, set for a shareholder vote on Oct. 30, could accelerate its transition to AI infrastructure, though proxy advisory firms have urged caution over the deal’s valuation terms.

Analyst sentiment remains divided. H.C. Wainwright and Roth/MKM upgraded Core Scientific to “Buy” with price targets of $25 and $23.50, respectively, under the assumption the merger fails. However, the stock trades at a high price-to-sales ratio of 16.8, reflecting market confidence in its AI-focused strategy despite weak profitability metrics. With $694.8 million in cash and Bitcoin holdings, the company maintains liquidity, but structural risks like a -1.09 debt-to-equity ratio and volatile cryptocurrency exposure persist. The stock’s trajectory will likely hinge on the merger’s outcome and its ability to scale AI infrastructure demand.