20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

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

Number of Hedge Fund Holders: 58

Average Upside Potential: 30.1%

Core Scientific, Inc. (NASDAQ:CORZ) has been strategically transitioning toward the burgeoning Artificial Intelligence and High-Performance Computing (AI/HPC) sector, a move that places it well to capitalize on the growing AI sector. During Q3 2024, the company grew its HPC business, both in terms of contracted power and total capacity. The company also reallocated 100 megawatts of infrastructure previously designated for bitcoin mining to its HPC business, increasing its total HPC hosting capacity to 800 megawatts.

Core Scientific, Inc. (NASDAQ:CORZ)’s partnership with CoreWeave points to a significant milestone in Core Scientific’s transition. Apart from providing a stable revenue stream, it also places Core Scientific, Inc. (NASDAQ:CORZ) as a key player in the rapidly growing AI infrastructure market. The company’s strategic pivot comes at a time when the demand for AI and HPC infrastructure has been growing. Core Scientific, Inc. (NASDAQ:CORZ)’s existing power infrastructure and data centers offer a significant competitive advantage. Furthermore, the scarcity of power throughout the US grid makes its assets increasingly valuable, giving it a first-mover advantage in the AI/HPC space.

The increasing demand for power in the AI sector places the company’s infrastructure assets in a favorable position. Also, Core Scientific, Inc. (NASDAQ:CORZ)’s ability to rapidly set up AI/HPC data centers by leveraging existing infrastructure offers a time advantage over competitors. Roth Mkm initiated coverage on shares of the company and gave a “Buy” rating with a price target of $25.50 on 15^th November.