Core Scientific Surges on AI Pivot, Q2 Earnings, and Major AMD Deal

• Core Scientific reported a 109% year-over-year revenue increase in Q2 2026, driven by a strategic pivot to high-density colocation services for AI workloads.
• The company secured a major partnership with AMD for up to 2.5 gigawatts of data center capacity, bringing contracted potential revenue to $24 billion.
• Multiple analyst firms upgraded Core Scientific, citing transition from Bitcoin mining to digital infrastructure for artificial intelligence.
• The company terminated a $41.9 million mining chip contract with Block, signaling retreat from cryptocurrency self-mining.

Core Scientific Inc. (NASDAQ: CORZ) reported second-quarter financial results that underscored its rapid transformation from a cryptocurrency mining operator to an AI-focused digital infrastructure provider. Total revenue for the quarter ended June 30, 2026, reached $164.2 million, representing a 109% increase from the $78.6 million recorded in the same period of 2025. This surge was primarily driven by high-density colocation services, which now constitute the vast majority of the company's business model.

Colocation revenue specifically jumped to $136.7 million, a massive leap from the $10.6 million reported in Q2 2025. This segment now accounts for approximately 83% of total revenue, compared to just 13% a year earlier. The company reported adjusted EBITDA of $41.1 million, up significantly from $28.5 million in the prior-year quarter, indicating improving operational efficiency in its new business focus.

What Is Driving Core Scientific’s Strategic Shift?

The company is actively converting its facilities to host AI and high-performance computing workloads. Core Scientific announced a partnership with Advanced Micro Devices Inc. (AMD) to support up to 2.5 gigawatts of leasable capacity. This agreement includes 15-year contracts for approximately 530 megawatts across five sites, with the potential to expand further as enterprise demand for AI infrastructure grows.

The AMD deal anchors more than $14 billion in potential base contracted revenue, adding to a total contracted power capacity of approximately 1.1 gigawatts. This portfolio represents over $24 billion in potential contracted revenue, highlighting the scale of Core Scientific's ambition in the AI sector. The partnership also involves collaboration on physical infrastructure design and the deployment of AMD’s chips and software, starting in 2027.

Simultaneously, Core Scientific is winding down its legacy operations. The company paid $41.9 million to terminate a bitcoin mining chip contract with Block, effectively canceling future equipment deliveries. This move aligns with a strategy to stop investing in new mining equipment and instead repurpose facilities for colocation services. The self-mining segment posted a gross loss of $12.2 million in Q2, contrasting sharply with the $80 million gross profit generated by colocation services.

How Are Analysts and Investors Responding to the Pivot?

Market reaction to the Q2 results and strategic developments has been largely positive. Shares of Core Scientific surged 22.9% following an upgrade by Keefe, Bruyette & Woods, which raised its rating to Outperform. Freedom Capital Markets also upgraded the stock to Buy, citing progress on a major contract with CoreWeave and the new AMD deal.

Freedom Capital raised its revenue estimates for the upcoming quarters, projecting $207.3 million for Q3 and $219.6 million for Q4. The firm highlighted that Core Scientific is billing for 437 megawatts of capacity, a metric that places it ahead of many competitors in the sector. This billing capacity represents approximately $635 million in average annualized colocation GAAP revenue.

Institutional investors are also adjusting their positions. Anson Funds Management LP purchased a new stake in the company, acquiring 306,000 shares in the first quarter. Segall Bryant & Hamill LLC grew its stake by 108.2%, purchasing additional 1,198,020 shares valued at approximately $34.5 million.

Despite the positive momentum, the company reported a GAAP net loss of $1,155.3 million for the quarter. This loss was primarily driven by a change in the fair value of warrants due to stock price appreciation, rather than core operational performance. Capital expenditures remained high at $797.5 million, reflecting substantial investments in data center infrastructure necessary to support the AI transition.

The company's liquidity stood at $1,819.4 million at the end of the quarter, providing a buffer for ongoing capital projects. Analyst consensus currently stands at a Moderate Buy, with an average price target of approximately $31.60 across various firms. The transition story remains the primary driver of investor sentiment, as the market evaluates the execution risks associated with converting mining facilities to AI data centers.