Why Core Scientific Inc. (CORZ) Crashed On Wednesday?

We recently published a list of AI Stocks Dominate Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where Core Scientific Inc. (NASDAQ:CORZ) stands against other AI stocks that dominate Wednesday’s worst performers.

Wall Street’s major indices ended in the negative territory on Wednesday as investors parked funds to minimize risks from the resumption of trade war among the world’s largest economies, with a fresh round of tariffs scheduled to be implemented next week.

The tech-heavy Nasdaq fell the hardest, down 2.04 percent, followed by the S&P 500, down 1.12 percent. The Dow Jones declined by 0.31 percent.

According to President Donald Trump, all vehicles made outside of the US would be slapped with a 25-percent tariff.

The broader market downturn spilled over into 10 companies—predominantly AI stocks—further dampened by a cautious outlook on the industry. In this article, we listed Wednesday’s 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

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Core Scientific Inc. (NASDAQ:CORZ)

Core Scientific dropped for a second day on Wednesday, losing 11.89 percent to end at $7.63 each, in line with its AI and Bitcoin mining counterparts.

As of this writing, the price of Bitcoin was down by 0.10 percent at $86,835 apiece, as traders disposed of positions after President Donald Trump announced a fresh round of tariffs on vehicles manufactured outside the US.

Meanwhile, CORZ was also dampened by bearish remarks from Alibaba (NYSE:BABA) Chairman Joe Tsai that the AI sector has become a bubble.

“I’m still astounded by the type of numbers that are being thrown around in the U.S. about investing into AI,” he said. “I think in a way, people are investing ahead of the demand that they’re seeing today, but they are projecting much bigger demand.”

CORZ is a company focused on digital infrastructure for high-value, innovative, networked digital solutions such as the Bitcoin Network, other digital assets, AI Compute, and others.

Overall, CORZ ranks 1st on our list of AI stocks that dominate Wednesday’s worst performers. While we acknowledge the potential of CORZ as an investment, our conviction lies in the belief that some 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 as promising as CORZ but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.