Core Scientific (CORZ) shares soared late on Thursday following a Wall Street Journal report that CoreWeave (CRWV) is once again interested in acquiring the AI infrastructure company.
While top executives from both firms are already in advanced talks, financial terms of the potential agreement remain unknown, the report added.
Including the recent rally, Core Scientific stock is up more than 160% versus its April low.
CoreWeave’s renewed interest in buying CORZ could prove a meaningful tailwind for the latter’s investors since it validates its strategic pivot from crypto mining to AI infrastructure.
A potential buyout could help Core Scientific could rposition it as a critical enabler in the generative artificial intelligence arms race.
Moreover, takeover agreements often involve a significant premium. So, it’s reasonable to believe that an agreement with CRWV will likely deliver immediate value to Core Scientific shareholders.
That’s what made CORZ shares soar more than 40% on Thursday.
On the flip side, investors should note that neither company has so far confirmed reports of buyout discussions.
For those sticking with Core Scientific stock at current levels, that’s a huge risk given CORZ could give up its recent gains entirely if the WSJ report proved more rumor than reality in the days ahead.
Additionally, since the AI stock has rallied some 40%, a strong enough case can be made that much of the anticipated benefit from a potential CoreWeave deal is baked into it already.
Caution is warranted in buying CORZ shares also because the company’s revenue crashed about 56% year-on-year to a weaker-than-expected $79.5 million in its latest reported quarter.
Despite the aforementioned concerns, Wall Street remains bullish on Core Scientific stock, forecasting further upside in the second half of 2025.
According to Barchart, the consensus rating on CORZ shares currently sits at “Strong Buy” with the mean target of about $18 indicating potential for another 7% gain from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
