CORZ Stock Rebounds After AMD Partnership Unlocks Multi-Gigawatt AI Expansion

• AMD will deploy its Instinct GPUs, EPYC CPUs, and ROCm software across Core Scientific's facilities and will receive market-priced warrants tied to the partnership.
• Core Scientific reported second-quarter revenue of $164.2 million, topping analyst estimates of about $135 million, while earnings matched Wall Street expectations.
• The company also said it has increased its contracted leased power capacity to roughly 1.1 GW, representing more than $24 billion in potential contracted revenue.

Shares of Core Scientific (CORZ) rallied in pre-market trading on Tuesday after the company reported second-quarter results and announced a new infrastructure partnership with Advanced Micro Devices (AMD).

CORZ stock jumped as much as 10% in early morning trade. On Stockwits, retail sentiment around the company rose to ‘bullish’ from ‘neutral’ territory over the past day, and chatter rose to ‘normal’ from ‘low’ levels. Platform data showed a 300% increase in message volume over the last 24 hours. 

Meanwhile, AMD’s stock fell more than 5% in pre-market trade, with retail sentiment trending in the ‘bullish’ zone over the past day. 

CORZ, AMD Sign Multi-Gigawatt Infrastructure Agreement

Under the agreement, AMD will secure more than 500 megawatts (MW) of U.S. data center capacity from Core Scientific beginning in 2027, with the ability to expand up to 2.5 gigawatts (GW). 

The companies said they would collaborate on physical infrastructure design and deployment of AMD's Instinct GPUs, EPYC CPUs, and ROCm software. As part of the deal, AMD will also receive market-priced warrants to purchase CORZ common stock, subject to certain commercial conditions. 

"Core Scientific's extensive portfolio of AI-ready data centers expands access to the infrastructure our customers need to deploy AMD AI solutions at scale," said Mathew Hein, AMD's senior vice president and chief strategy officer of corporate development. Core Scientific CEO Adam Sullivan said the partnership positions the company "to support AMD's technology roadmap and grow our relationship meaningfully over time."

CORZ Revenue Tops Estimates While AI Buildout Accelerates

Core Scientific's total revenue rose to $164.2 million in the second quarter (Q2), beating market estimates of $135 million and up from more than double the $78.6 million from a year earlier. The company posted a loss of $0.06 per share, at par with Wall Street forecasts, according to Koyfin data.

Alongside the AMD deal, Core Scientific said it increased total leased customer power capacity to approximately 1.1 gigawatts, representing more than $24 billion in potential contracted revenue. 

As of mid-July, the company was billing customers for 437 megawatts of capacity, equivalent to roughly $635 million in annualized GAAP colocation revenue. Numbers also showed that Core Scientific continued to invest heavily in expanding its AI infrastructure. 

Capital expenditures climbed to $797.5 million during the quarter from $389.2 million in the first quarter, while liquidity increased to $1.82 billion from $1.04 billion, supported in part by $4.28 billion of debt issuance.

The uptick in CORZ stock comes after it tumbled nearly 9% in the previous session following a downgrade from Keefe Bruyette. The shares are up over 40% this year, and have gained more than 50% in the last 12 months. 

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