KBW Downgrades Core Scientific Due to Lease Delays and Execution Risks
KBW analyst Stephen Glagola downgraded Core Scientific (NASDAQ: CORZ) from Outperform to Market Perform, citing elevated execution risks in the second half of 2026. The firm also lowered its price target to $25 from $28 as concerns grow over delays in securing new AI/HPC colocation leases. Core Scientific has not signed a new lease for about 17 months and is investing roughly $2 billion into development and acquisitions before finalizing contracts on expansion projects. KBW estimates the company’s current share price assumes around 400 megawatts of new leasing, which represents most of what management believes can be delivered in one year. The firm also highlighted that while Core Scientific was an early mover in repurposing power infrastructure for AI/HPC colocation, competitors have secured multiple investment-grade tenant leases. Despite active discussions with hyperscalers and other AI customers at key sites like Pecos, Texas, and Muskogee, Oklahoma, no exclusivity agreements are currently in place.
Tickers: $CORZ
Topics: AI/HPC infrastructure execution risk lease delays stock downgrade