KBW lifts its view of Core Scientific after AMD lease adds value to contracted portfolio

Core Scientific’s shares drew a fresh upgrade from KBW after the company disclosed that AMD had leased computing space, a development the bank said raised the value of Core Scientific’s contracted backlog. In a note cited by Yahoo Finance, KBW valued Core Scientific’s contracted portfolio at roughly $23 per share and added further “option” value tied to expansion capacity that is supported by interconnection agreements.

KBW’s updated framework separated two components of value. The first was the contracted portfolio, which the bank treated as cash-flow visibility from existing commitments. The second was incremental value associated with expansion capacity, described as 384 megawatts (MW) of interconnection-backed growth capability, which KBW said could be monetized if project and power-delivery milestones are reached.

In the same view, KBW assigned additional option value to the 384 MW of interconnection-backed expansion capacity. “Option value” in this context refers to the idea that while the underlying capacity may not yet be fully producing, it can acquire economic value as customers take space and power delivery progresses. KBW’s approach implies that the interconnection status reduces some of the “how quickly can this capacity be used” uncertainty, compared with projects without grid access.

Based on the bank’s model inputs, KBW indicated an upside scenario implying about a 35% rise in Core Scientific’s stock. The note, as described, linked the change directly to AMD’s lease, which KBW characterized as increasing the contracted value of the power and capacity portfolio rather than merely providing short-term revenue.

AMD’s lease also highlighted a broader theme in the data-center and high-performance computing supply chain: customers who can secure meaningful capacity and power access can strengthen the revenue profile of infrastructure providers that own or control computing-ready facilities. For providers like Core Scientific, customer leases matter not only for near-term utilization, but also for how analysts view the monetization path for expansion capacity that depends on the pace of interconnection and buildout.

Even so, the move leaves several questions unanswered in the publicly available reporting. The Yahoo Finance summary does not spell out the lease length, the effective pricing, the exact location or facility footprint tied to AMD’s commitment, or whether the lease influences timing for bringing the 384 MW expansion into active service. It also does not describe what portion of the expansion capacity is fully under contract versus still awaiting new commitments.

KBW’s $23-per-share contracted portfolio valuation and the added option value suggest that the bank sees reduced risk around utilization and project progression after AMD’s lease. But without disclosure of the underlying assumptions, the key drivers for the implied 35% upside, such as discount rates, expected operating costs, or utilization ramp timing, remain unclear to outside investors.

Looking ahead, investors will likely focus on any follow-through disclosures around the contracted portfolio, including customer concentration, utilization trends, and milestones for interconnection-backed capacity. Any additional customer leasing and updates on the status of the 384 MW expansion would determine whether the option value embedded in KBW’s model is realized in practice.

It also remains important to watch for how this valuation framework changes as power markets evolve and as the industry’s competitive landscape shifts among providers of compute capacity. If more leases are announced that similarly strengthen the contracted component, analysts may continue to re-rate infrastructure operators on improved visibility rather than on theoretical growth capacity alone.