CORZ data center pivot

What happened: Core Scientific (NASDAQ:CORZ), a data center company, announced a strategic partnership with AMD (NASDAQ:AMD) on July 27, 2026. The deal involves AMD leasing 529 megawatts of U.S. AI data center capacity from Core Scientific under a 15-year agreement, potentially generating over $14 billion in revenue for Core Scientific. This partnership follows Core Scientific's pivot from a Bitcoin mining focus to data center services.

Market impact: The data center sector and AI-focused companies are affected. The long-term lease agreement signals growing demand for AI data center capacity, driving growth for both Core Scientific and AMD. CORZ stock surged 75.8% in the first half of 2026, reflecting investor enthusiasm for this strategic shift. However, some analysts remain cautious, with one downgrading CORZ to a 'hold' due to concerns about colocation deal dynamics.

What to watch next: Core Scientific's Q3 earnings on October 25, 2026, will provide insights into the financial impact of the AMD partnership. Additionally, AMD's product roadmap and any further data center partnerships could influence CORZ's stock performance. Lastly, regulatory decisions on data center expansion and AI technology could shape the broader market landscape for these companies.