Why Core Scientific Shares Are Up

Core Scientific, Inc. CORZ shares are trading higher Tuesday after the company announced the signing of a series of 12-year contracts with CoreWeave.

The Details:

Under the terms of the agreements, Core Scientific will deliver approximately 200 megawatts (MW) of infrastructure to host CoreWeave’s high-performance compute (HPC) operations. 

Core Scientific will modify multiple existing, owned sites to host CoreWeave’s NVIDIA GPUs with site modifications expected to commence early in the second half of 2024 and achieve operational status in the first half of 2025. 

Once operational, Core Scientific expects the project to generate total cumulative revenue of over $3.5 billion during the initial 12-year terms of the contracts with the estimated average annual revenue of approximately $290 million.

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“Our new contracts with CoreWeave position us to transform our hosting business and our earnings power by capturing exciting growth opportunities in AI compute, one of today’s most dynamic technology segments, while also maintaining our strong bitcoin mining franchise,” said Adam Sullivan, Core Scientific CEO. 

“As demand for ready, high-power sites continues to outpace supply, we believe Core Scientific is well positioned to meet customer needs with a much shorter time to power than greenfield data center projects."

CORZ Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Core Scientific, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Core Scientific, the 200-day moving average sits at $3.56, according to Benzinga Pro, which is below the current price of $6.26. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

CORZ Price Action: According to Benzinga Pro, Core Scientific shares are up 29.9% at $6.32 at the time of publication Tuesday.

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