10 Most Promising New Technology Stocks According to Hedge Funds

1. Core Scientific, Inc. (NASDAQ:CORZ)

Number of Hedge Funds: 58

Core Scientific, Inc. (NASDAQ:CORZ) is a technology company that specializes in providing the essential infrastructure needed for bitcoin mining and high-performance computing (HPC). It operates a large fleet of computers, known as miners, which are designed specifically to mine Bitcoin. Moreover, the company also offers hosting services for other businesses that want to mine Bitcoin but do not have the necessary infrastructure. They provide space and resources in their data centers for these third-party miners.

It has multiple data centers located across the United States, including states like Georgia, Kentucky, North Carolina, North Dakota, and Texas. These facilities are purpose-built to handle the high energy demands of Bitcoin mining and HPC. Core Scientific, Inc. (NASDAQ:CORZ) has recently shifted its focus to artificial intelligence as well. At the beginning of June, the company announced signing a series of 12-month contracts with CoreWave, an AI hyperscaler, to deliver approximately 200 megawatts of infrastructure to host CoreWeave’s high-performance computing operations. The contract is expected to generate a total cumulative revenue of more than $3.5 billion under the initial one-year contract.

During the fiscal third quarter of 2024, Core Scientific, Inc. (NASDAQ:CORZ) generated total revenue of $95.4 million, which includes $68.1 million from digital asset self-mining, $16.9 million from digital asset hosted mining, and $10.3 million from high-performance computing (HPC) hosting. The self-mining revenue witnessed an 18% decline due to a drop in the number of bitcoins mined and an increased network hash rate, which made mining more competitive.

To cater to this, management has successfully deployed around 31,000 new-generation miners, which improved their self-mining hash rate by 36%. Moreover, the company also expanded its infrastructure significantly, including a 100-megawatt expansion at its Pecos, Texas facility.

While we acknowledge the potential of Core Scientific, Inc. (NASDAQ:CORZ) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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