Core Scientific positioned itself as a 'colocation moat' incumbent with growing leverage from the AI data center buildout.

Core Scientific, Inc. (NASDAQ: CORZ) derives the majority of its revenue from its colocation business, which accounts for more than 80% of total revenues. This concentration reflects impressive colocation performance, with the segment underpinned by long-term contracts including arrangements with AMD and CoreWeave, offering meaningful customer diversification and high profit margins.

The company's financial trajectory remains positive. FY2026 revenue is estimated at $671.63 million, representing 110.53% year-over-year growth, while EBITDA is projected to reach $194.08 million by FY2028. These metrics demonstrate robust execution in a rapidly expanding AI-driven market.

Despite customer concentration risks stemming from CoreWeave's significance in the customer base, the upcoming AMD contract expansion and broader market tailwinds provide a constructive backdrop. Analysts project potential 93% upside to a price target of $42 by FY2027, supporting a Buy rating on the stock.