CORZ rises over 5% as expanding AI cloud business boosts earnings momentum

Traders Union
All News
Stocks
Core scientific rises 5.14% today

Highlights

Core Scientific reported record second-quarter revenue of $2.58 billion, up 112% year over year, with narrowed losses per share meeting or exceeding estimates.
AI cloud revenue backlog reached $104.2 billion and over $25 billion in new customer commitments were secured at the start of the third quarter.
Core Scientific stock trades below key short- and medium-term moving averages with technical signals indicating 76% probability of a downward move and expected range of $19.64 to $22.83 over five days.

Record revenues and new commitments drive enterprise adoption

Core Scientific reported its second-quarter financial results, posting a record revenue of $2.58 billion with a 112% year-over-year increase, and narrowed losses per share that met or exceeded Wall Street expectations. The company’s AI cloud revenue backlog reached $104.2 billion, and over $25 billion in new customer commitments were secured at the start of the third quarter. Management highlighted that this quarter marked an inflection point as expanding scale contributed to stronger operating leverage and broader enterprise adoption, with partnerships deepening across enterprise and government segments.

Anton Kharitonov, expert at Traders Union, notes that despite impressive revenue growth, Core Scientific's technical profile remains weak. He observes that the stock is struggling below key moving averages and faces persistent downside momentum. Momentum indicators, including MACD and RSI, confirm the near-term risks. Kharitonov points out that heavy seller interest outweighs the reaction to positive news, suggesting recovery is not yet convincing. "Until CORZ reclaims levels above $21.29, sellers are likely to dominate and further declines are probable," he warns.

Viktoras Karapetjanc, expert at Traders Union, highlights the record-setting quarter and robust AI cloud backlog as signals of ongoing structural strength. He emphasizes the surge in enterprise and government commitments, reflecting strong institutional adoption. Karapetjanc believes operating leverage is now improving at scale, setting the stage for further gains. The analyst maintains that the bullish long-term structure stays intact above the 200-day moving average. "Given the expanding client base and $104.2 billion revenue backlog, I see further growth ahead and the market offering multiple positive setups," he states.

Jainam Mehta, market strategist, sees mixed signals as dominant in CORZ. While the long-term trend remains supported above $19.79, short-term technicals indicate caution. He points out the 8.15% opening gap fading intraday as a possible sign of sentiment divergence. "If resistance at $21.29 breaks, a fast move higher could develop — but tactical traders should watch for a reversal toward $19.64 on renewed weakness," Mehta advises.

Mixed technical signals as short-term weakness overshadows long-term support

CORZ is trading below its 20-day ($21.61) and 50-day ($24.36) moving averages, but remains above the 200-day ($19.79), signaling downside pressure in the short and medium term with longer-term trend support intact. Immediate resistance is seen at the Ichimoku Kijun ($21.29), while support sits at $20.54. The moving average alignment is broadly bullish over the longer term due to the MA-50 vs MA-200 relationship. Momentum indicators are negative: MACD and ADX both signal a sell, the RSI is at 41.35 with a negative outlook, the CCI is deeply oversold at -109.82, and Bull/Bear Power at -0.67 favors sellers. The Stochastic RSI and Awesome Oscillator are both neutral, while the HMA signals a strong buy. Intraday, CORZ climbed $1.02 (5.14%) after opening with an 8.15% upside gap, but prices are currently near the session low and volatility is 5.45%, underscoring pressure after the open. Oscillators and momentum readings overall point to mixed signals, with some still indicating weakness despite the initial rise.

Earlier, analysts noted that Core Scientific was experiencing a technically mixed setup with short-term downside risk prevailing amid ongoing industry headwinds. The latest results add a fresh dimension, with robust AI cloud growth and strong customer commitments, but the current technicals indicate that a move below $20.54 could trigger a renewed downside test toward $19.64 in the days ahead.

Source of Data: CORZ Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.