Why Core Scientific Stock Was Up 75.8% In The First Half of 2026

Shares of Core Scientific (NASDAQ: CORZ) were up 75.8% in the first half of 2026, according to data from S&P Global Market Intelligence. After the cancellation of its merger with CoreWeave, the power provider for data centers keeps securing long-term contracts, which are helping the business transition away from being a Bitcoin miner.

The stock is up 2,000% over the last three years alone and is considered a massive winner in the era of artificial intelligence (AI). Here's why Core Scientific stock was rising in the first half of 2026, and whether you should consider adding shares to your portfolio right now.

Long-term power contracts

Core Scientific used to operate as a cryptocurrency miner, an industry that requires massive amounts of electricity but has fallen out of favor as cryptocurrency prices have sunk to the gutter. Lucky for Core Scientific, another sector that needs massive amounts of electric power is AI, specifically data centers.

Instead of assembling and operating these data centers itself, Core Scientific provides the power "shell" for these facilities, working as a subcontractor to secure electric power, while its customers, such as CoreWeave, actually build the computing racks for these AI systems. Because of this close relationship in the same sector, CoreWeave actually tried to merge with Core Scientific last year for $8.7 billion, but that deal fell apart.

The company is now considered an AI winner, with electric power now one of the major bottlenecks to increasing data center capacity. As of last quarter, Core Scientific had just raised $3.3 billion in bonds and had a pipeline of power capacity of up to 4.5 gigawatts. Revenue grew to $115 million in the quarter, driven mainly by colocation data center revenue reaching new heights. If the AI data center buildout continues at its current rate, Core Scientific will likely see nice growth in the years ahead.

Image source: Getty Images.

Is there still time to get in on Core Scientific stock?

After its meteoric rise this year, Core Scientific currently trades at a market cap of $7 billion. Over the last twelve months, it has generated just $355 million in revenue and burned $471 million in free cash flow due to its massive capital investments.

This puts the stock at a premium multiple. Revenue may grow explosively in the years ahead, but there is no telling what the unit economics of this business will look like, or how durable the AI data center buildout will be. For these reasons, it is probably best to avoid Core Scientific stock going forward.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.