12 Best Nasdaq Stocks Under $20 to Buy Now

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1. Core Scientific Inc. (NASDAQ:CORZ)

Current market price: $8.66

Upside Potential: 125%

Number of Hedge Fund Holders: 66

Core Scientific Inc. (NASDAQ:CORZ) operates large-scale, purpose-built facilities for digital asset mining and plays a pivotal role in blockchain infrastructure, software solutions, and related services. The company utilizes its extensive fleet of mining machines to generate bitcoin for its portfolio while also providing hosting services for major bitcoin mining clients.

In its February production and operations update, Core Scientific Inc. (NASDAQ:CORZ) reported generating 215 bitcoin from its proprietary fleet of miners (a large network of computing machines). By the end of the month, the company was operating approximately 159,000 owned bitcoin miners, with around 96% actively running in its data centers. Additionally, through its data center hosting services, customer-owned bitcoin miners collectively earned an estimated 16 bitcoin during the month. In February, Core Scientific Inc. (NASDAQ:CORZ) also announced a $1.2 billion expansion deal with CoreWeave to enhance its data center capacity. This agreement is projected to drive the company’s total expected revenue to $10.2 billion over a 12-year contract period.

On March 11, H.C. Wainwright analyst Kevin Dede reaffirmed a Buy rating on Core Scientific Inc. (NASDAQ:CORZ) with a price target of $17. His positive outlook is fueled by the company’s strategic positioning and growth potential, particularly in light of its partnership with CoreWeave, which recently secured a $12 billion agreement with OpenAI. The analyst noted that this collaboration underscores Core Scientific’s essential role in expanding CoreWeave’s high-performance computing capabilities. Furthermore, CoreWeave’s upcoming IPO at a strong valuation indicates additional growth opportunities, indirectly benefiting Core Scientific. Despite existing challenges, the company’s robust execution and transition toward a stable HPC revenue model support the positive rating. The analyst further added that a potential bitcoin price rebound and customer diversification further strengthen its growth outlook.

While we acknowledge the potential of 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 time frame. If you are looking for an AI stock that is more promising than CORZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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