Core Scientific partners with AMD to unlock multi-gigawatt AI capacity expansion, rebounding stock after 30% discount.

Core Scientific's stock surged as much as 10% in pre-market trading Tuesday following the company's second-quarter earnings report and a significant infrastructure partnership with Advanced Micro Devices (AMD). Retail sentiment around CORZ shifted to bullish territory, with message volume on Stocktwits jumping 300% over the past 24 hours. Meanwhile, AMD's stock declined more than 5% in early trading.

Under the partnership agreement, AMD will secure more than 500 megawatts of U.S. data center capacity from Core Scientific beginning in 2027, with the option to expand to 2.5 gigawatts. The companies will collaborate on physical infrastructure design and deployment of AMD's Instinct GPUs, EPYC CPUs, and ROCm software. AMD will also receive market-priced warrants to purchase CORZ common stock, contingent on certain commercial conditions.

Mathew Hein, AMD's senior vice president and chief strategy officer of corporate development, stated: "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." Core Scientific CEO Adam Sullivan called the partnership a means to "support AMD's technology roadmap and grow our relationship meaningfully over time."

Core Scientific reported Q2 revenue of $164.2 million, beating analyst expectations of approximately $135 million and more than doubling the $78.6 million from the prior year. The company reported a loss of $0.06 per share, matching Wall Street forecasts. Total leased customer power capacity increased to approximately 1.1 gigawatts, representing over $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 colocation revenue.

Capital expenditures surged to $797.5 million in Q2 from $389.2 million in Q1, while liquidity rose to $1.82 billion from $1.04 billion, bolstered by $4.28 billion in debt issuance. The stock's Tuesday gain reversed a nearly 9% decline from the previous session following a Keefe Bruyette downgrade. Shares remain up over 40% year-to-date and have gained more than 50% over the past 12 months.