THE APEX TIMES
KBW reiterates Core Scientific outperform rating, arguing AMD’s 1.9 GW reservation is undervalued
In a note seen by investors, KBW said the market is focusing on Core Scientific’s exposure to CoreWeave’s credit while overlooking the value of AMD’s remaining power reservation option tied to Core Scientific’s hosting footprint.
KBW maintained an Outperform rating on Core Scientific and argued that the market is pricing the company too cheaply relative to the economics of its existing server leases, according to a report circulating through Yahoo Finance on Oct. 14.
The brokerage’s central point is that Core Scientific already trades, in KBW’s view, at roughly the implied value of its current contracted leases. KBW said investors are not giving adequate credit to potential upside from an additional power-related arrangement involving AMD.
KBW highlighted what it described as AMD’s 1.9 gigawatt reservation, saying the figure is “overlooked” by the market. In plain terms, the reservation refers to an additional, power capacity commitment that AMD can potentially draw on in connection with hosting capacity at or through Core Scientific. KBW’s framing suggests that this reservation creates incremental value beyond the baseline of existing lease economics.
The report also said investors are fixated on CoreWeave’s credit, implying that market attention has been directed toward whether CoreWeave will meet financial obligations associated with its relationship to Core Scientific’s data center business. KBW’s counterargument was that this focus may be crowding out other components of Core Scientific’s value, including the portion associated with AMD’s remaining option value.
AMD and Core Scientific are tied together in the data-center buildout logic of the artificial intelligence power crunch. Core Scientific operates or supports data center capacity that is used by cloud, compute, and GPU customers, and power reservations are often crucial because electricity availability can be a binding constraint. In that environment, large reservation windows can influence how quickly capacity can be expanded or monetized.
KBW’s note, as characterized in the article, did not offer a fully detailed bridge from the 1.9 GW reservation to a specific per-share value for Core Scientific. It also did not spell out how much probability the reservation option carries, the timing of any potential conversion into incremental revenue, or how counterparties’ credit dynamics could affect the economics.
As with many brokerage takes on complex data-center arrangements, the practical question for investors is how the reservation is treated in contracting and in financial reporting, and how much incremental capacity can be monetized without disruptions. Whether AMD’s reservation translates into higher margins, faster revenue growth, or both would be key, but the Oct. 14 report does not appear to provide those granular details.
Why It Matters
- If market pricing underweights power-reservation options, it could change how investors assess data-center operators exposed to AI compute demand.
- The debate over “credit focus” versus “contracted value plus options” highlights how sentiment can swing around customer financial risk versus capacity monetization economics.
- For AMD-related narratives, the treatment of reserved power capacity can affect perceptions of how much incremental compute infrastructure can be activated.
Key Facts
- KBW reiterated a Core Scientific Outperform view, arguing the company is priced at the value of its existing leases.
- KBW said investors are overly focused on CoreWeave’s credit rather than other value drivers.
- KBW pointed to AMD’s 1.9 gigawatt reservation as an overlooked source of upside.
- The discussion was presented in a report distributed through Yahoo Finance on Oct. 14, 2026.
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