Despite the recent 30% drop in Core Scientific’s (CORZ) share price, Bernstein remains confident in the company’s potential. This drop came about after Chinese AI startup, DeepSeek, questioned the worth of bitcoin miners in the data center sector.

This decline in price has resulted in a significant discount on the stock, as indicated by a Bernstein research report released on Thursday.

As an industry leader among AI-focused miners, Core Scientific boasts a power supply of 1.3 gigawatts (GW) and a 12-year AI contract with CoreWeave.

According to a team of analysts led by Gautam Chhugani, bitcoin miners have a limited time frame of 12-18 months to establish a hybrid data center business, while capital expenditures within large-scale tech companies remain steady.

Bernstein predicts that Core Scientific is on course to complete its first cluster of data centers in the first half of this year. The company continues to purchase and develop new power sites, further cementing its position in the industry.

Despite having 70% of its capacity allocated to AI, Core Scientific’s shares are currently trading closer to bitcoin mining valuations, rather than data center valuations. Bernstein holds a positive outlook on Core Scientific’s shares, setting a price target of $17. Early trading saw the stock rise by 3.8% to $11.90.

For more details, you can read Bitcoin Mining Stocks With AI Ambition Battered 20%-30% Lower as Nvidia’s Plunge Grips Crypto.

This article should attract individuals interested in investment opportunities, especially in companies like Core Scientific that are making significant strides in the AI and Bitcoin mining industries. However, the primary goal of this article is to provide an informative and engaging read, not to offer investment advice.