Core Scientific's Stock Surge Signals Undervaluation in AI Infrastructure Consolidation

The recent 35% surge in Core Scientific's stock price—surpassing $16.36 on June 26, 2025—has reignited speculation about its rumored buyout by CoreWeave, an AI infrastructure powerhouse. This dramatic move underscores a pivotal moment for the company, once a struggling bitcoin miner, now positioned as a critical player in the AI-driven data center sector. As acquisition talks intensify, Core Scientific's stock rally offers investors a compelling leveraged play on the consolidation of data infrastructure and the booming AI economy.

The Catalyst: Buyout Rumors and a Shifting Valuation
The Wall Street Journal's report of CoreWeave's renewed interest in acquiring Core Scientific has sent shockwaves through the sector. Notably, this marks a stark contrast to the $1 billion ($5.75/share) bid CoreWeave proposed in 2024, which Core Scientific's board rejected as too low. Today, Core Scientific's market cap has quintupled to nearly $5 billion, reflecting investor confidence in its post-bankruptcy reinvention. This premium underscores the market's belief that Core Scientific's infrastructure—now repurposed for AI—is far more valuable than previously recognized.

The data above reveals a stock that has rebounded strongly since its 2023 bankruptcy, with the recent surge amplifying its trajectory.

Strategic Synergies: The $10.2 Billion Partnership
Core Scientific and CoreWeave's decade-long partnership, formalized in a 12-year contract, is the linchpin of this potential merger. By early 2026, Core Scientific is set to deliver 590 megawatts of data center capacity to CoreWeave—a project valued at $10.2 billion in revenue commitments. This infrastructure is already fueling CoreWeave's AI services, and merging the two could eliminate operational redundancies while accelerating CoreWeave's global expansion.

For Core Scientific, the deal would validate its pivot from crypto to AI, providing a stable revenue stream and access to CoreWeave's cutting-edge technology. For CoreWeave, acquiring Core Scientific would deepen its control over high-performance computing (HPC) resources—a critical asset as AI workloads explode.

CoreWeave's own 350% surge since March kicks off the article's data queries.

Valuation Multiples: A Discounted Asset or Undervalued Gem?
Analysts highlight a stark discrepancy between Core Scientific's current valuation and its potential strategic value. The 2024 bid implied a valuation of ~$5.75 per share; today, shares trade at ~$16.36—a 184% premium. Even with projected quarterly losses of $0.07/share (down 75% YoY), Core Scientific's earnings estimates have risen 2.6% over 30 days, aligning with its stock's ascent.

The key question: Is Core Scientific's valuation still too low? Consider this:
- CoreWeave's AI-focused infrastructure has driven its own stock to 350% gains, yet Core Scientific's data centers—critical to that growth—remain undervalued.
- Competitors like Equinix trade at ~25x forward revenue multiples, while Core Scientific trades at just 6.5x its $343 million annualized revenue (as of Q1 2025).

The Investment Thesis: Betting on AI Infrastructure Consolidation
Core Scientific's story is a microcosm of a broader sector trend: former crypto miners are now cornerstones of AI infrastructure. As demand for HPC data centers skyrockets, consolidation is inevitable. Core Scientific's $590 million infrastructure pipeline (to CoreWeave alone) positions it as a prime target for vertical integration.

Investors should view this as a leveraged play on two unstoppable forces:
1. AI Demand: The global AI infrastructure market is projected to grow at a 22% CAGR through 2030, with HPC workloads dominating.
2. Sector Consolidation: Weak players in legacy industries (e.g., crypto mining) are being absorbed by tech giants hungry for scale.

Risks and Considerations
- Deal Uncertainty: Both companies have remained silent, and negotiations could collapse if CoreWeave balks at the $5 billion price tag.
- Financial Struggles: Core Scientific's losses and shrinking revenue (projected $83.3M in Q2, down 41% YoY) could deter investors.
- Regulatory Scrutiny: Mergers in high-stakes tech sectors often face antitrust challenges.

Conclusion: A High-Reward, High-Risk Opportunity
Core Scientific's stock surge is no fluke—it reflects a market betting on its transformation into an AI infrastructure leader. While risks abound, the potential upside of a CoreWeave acquisition or a sector-wide consolidation wave makes Core Scientific a compelling speculative play. For investors comfortable with volatility, this could be a once-in-a-decade chance to buy a key AI infrastructure asset at a discount.

As data centers become the lifeblood of the AI economy, Core Scientific's valuation may finally catch up to its strategic worth—if the rumors pan out.

Investment Recommendation:
- Bullish on Core Scientific (CSTR): Consider a long position with a stop-loss below $14.50, targeting $20/share if merger talks solidify.
- Caution: Pair this with a short position in CoreWeave (CW) if dilution concerns materialize, or hedge with put options.