KBW Reiterated Outperform Rating on Core Scientific
The firm set a $28 price target for the company, citing significant AMD reservation capacity as a key growth driver.
Updated on Oct. 14, 2026 in Data Centers
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KBW has reaffirmed its Outperform rating on Core Scientific and set a $28 price target for the stock. Analysts suggest that investors are currently overlooking the company's substantial 1.9 GW of AMD reservation capacity.
Why it matters
The analysis highlights that the market may be discounting existing leases while failing to account for future capacity growth. KBW expects AMD to exercise its rights for additional infrastructure in the near term.
Core Scientific holds 1.9 GW in total AMD reservation capacity, with existing leases valued at $15.54 per share. KBW applies a 6.6% cap rate to 15-year AMD leases and a 9.2% cap rate to 12-year CoreWeave contracts.
The players
KBW
This is a full-service investment bank and broker-dealer that specializes in the financial services sector.
Core Scientific
This company is a provider of high-performance data center infrastructure and hosting services.
AMD
This is a global semiconductor company that designs and produces computer processors and related technologies.
The details
Core Scientific continues to build ahead of project requirements while locking in equipment costs to support its infrastructure. The company currently manages senior secured notes and holds significant reserved capacity rights that extend through late 2028.
Timeline
October 13, 2026: Core Scientific stock closed at $15.43.
October 14, 2026: KBW reiterated an Outperform rating on the company.
December 28, 2028: AMD reservation rights are scheduled to expire.
The Tech Race
The valuation of data center capacity reflects a broader industry shift where infrastructure reservation agreements become primary assets. This move positions Core Scientific as a critical player in the race to support large-scale enterprise compute demands.
Investors may see the $28 price target as a signal regarding the potential upside for Core Scientific shares, which closed at $15.43. Those tracking the industry should note that future operational growth depends on AMD exercising its capacity reservations.
The takeaway
Investors should monitor the exercise of reservation rights as a key indicator of infrastructure demand. Understanding the distinction between current lease valuations and potential growth capacity is essential for evaluating long-term performance.
Further reading
For more information on the evolving landscape of high-performance infrastructure, visit the Data Centers section.
Source note: This article includes information reported by Blockspace Media.
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