Morgan Stanley Initiates Overweight Rating on TeraWulf
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy WULF?
Source: Benzinga
- Coverage Initiation: Morgan Stanley has initiated coverage on TeraWulf with an Overweight rating and a price target of $37, indicating substantial upside potential from current levels and reflecting optimistic market expectations for the company's future growth.
- Management Strength: The firm highlighted TeraWulf's strong history of securing agreements with data center customers and praised the management team's deep experience in building large-scale power infrastructure assets, which lays a solid foundation for the company's long-term development.
- Growth Outlook: Morgan Stanley estimates that TeraWulf could achieve an annual data center expansion of 250 MW between 2028 and 2032, assuming it hits roughly half of its targets in the base case, while the bull case suggests reaching 75% of its goals, showcasing robust growth potential.
- Positive Analyst Sentiment: Recently, multiple analysts have expressed positive sentiments towards WULF, with Needham reiterating a Buy rating and setting a target of $21, while Keefe, Bruyette & Woods raised its target from $9.50 to $24, indicating growing confidence in TeraWulf's prospects.
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Analyst Views on WULF
Wall Street analysts forecast WULF stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 15.910
Low
17.00
Averages
21.93
High
26.00
Current: 15.910
Low
17.00
Averages
21.93
High
26.00
About WULF
TeraWulf Inc. is a vertically integrated owner and operator of digital infrastructure. The Company develops and operates data centers for bitcoin mining and high-performance computing (HPC) workloads. The Company facilitates transaction validation of transactions on the global bitcoin network using its fleet of application-specific integrated circuit miners. Its segments include Digital Asset Mining and HPC Leasing. The Digital Asset Mining segment provides hash computation services to a mining pool operator. The HPC Leasing segment provides high-density colocation services to third parties for HPC operations. The Company's primary operations are centered at the Lake Mariner Campus, located on the shores of Lake Ontario. Lake Mariner campus is designed for scalable growth, with the capacity to expand up to 500 megawatts (MW) and 750 MW with certain transmission upgrades. It also specializes in development and operation of power generation assets and related electrical infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TeraWulf Shifts to AI Mining, Stock Surges 240%
- Market Shift: With Bitcoin prices falling below $100,000, TeraWulf, valued at $7 billion, has successfully pivoted to an AI-focused Bitcoin miner, with its stock rising 52% year-to-date and over 240% in the past year, demonstrating its competitiveness in emerging markets.
- AI Infrastructure Investment: Morgan Stanley has recently initiated coverage of the Bitcoin mining sector, particularly highlighting TeraWulf's execution capabilities in large-scale power infrastructure projects, which is expected to drive its AI infrastructure expansion plans through 2030.
- Profit Model Transition: TeraWulf is shedding Bitcoin holdings to finance its AI computing operations, indicating that AI business profitability is currently stronger, prompting investors to reassess its valuation model.
- Future Potential: Morgan Stanley believes that if TeraWulf is viewed as an AI infrastructure company, its price target could reach $37, more than double its current price of $17, indicating significant growth potential in the AI sector.
See More
TeraWulf Stock Hits New High as Analysts Upgrade Outlook
- Upgraded Earnings Expectations: Analysts now project TeraWulf will lose $0.17 per share in 2026, a significant improvement from the -$1.13 EPS reported last quarter, indicating strong potential in AI infrastructure that may attract more investor interest.
- New Price High: TeraWulf's stock reached a fresh 52-week high last week, driven by optimistic market sentiment regarding its future growth, showcasing investor confidence in the company's transformation.
- Analyst Rating Increases: Firms like Oppenheimer, Citizens, and Cantor Fitzgerald have raised their price targets and issued overweight ratings for TeraWulf, reflecting heightened expectations for improved fundamentals that could further boost the stock price.
- Strong Market Demand: As demand for computing capacity surges, TeraWulf's transition from a former cryptocurrency miner aligns with market trends, leading analysts to believe the company will capture more market share and enhance its competitive position.
See More
TeraWulf Hits New 52-Week High as Analysts Boost Ratings
- New Price High: TeraWulf's stock reached a new 52-week high this week, reflecting strong investor demand for AI infrastructure and indicating growing market confidence in its future growth potential.
- Analyst Rating Increases: Several analysts, including Oppenheimer and Citizens, have raised their price targets and issued overweight ratings for TeraWulf, anticipating continued improvement in the company's fundamentals that could drive stock price higher.
- Improved Earnings Expectations: Analysts now expect TeraWulf to narrow its EPS loss to $0.17 in 2026, a significant improvement from the -$1.13 reported last quarter, showcasing the company's positive developments in AI infrastructure buildout.
- Rising Market Attention: With the upcoming earnings report on February 26, market attention on TeraWulf is increasing, as investors anticipate the company will capture more market share amid surging demand for computing capacity.
See More
TeraWulf Shifts to AI Mining, Stock Soars
- Market Shift: TeraWulf is repurposing its Bitcoin mining computing capacity towards artificial intelligence (AI), a strategic pivot that could potentially double the company's value amid soaring AI demand, showcasing strong market adaptability.
- Financial Performance: Currently, TeraWulf boasts a market cap of $7 billion, with its stock rising 52% year-to-date and over 240% in the past year, reflecting strong investor confidence in its AI infrastructure potential.
- Investor Attention: Morgan Stanley has recently initiated coverage of the Bitcoin mining sector, particularly highlighting TeraWulf as a potential AI infrastructure investment, emphasizing its execution capabilities on large-scale power infrastructure projects, indicating optimistic market expectations for future growth.
- Profit Model Change: TeraWulf is selling Bitcoin to fund its AI computing operations, indicating that AI business profitability is currently stronger, prompting investors to reconsider its valuation model, potentially viewing it as an AI infrastructure company rather than a traditional Bitcoin miner.
See More
Hodges Capital Management Reduces TeraWulf Stake
- Share Reduction Details: Hodges Capital Management disclosed a sale of 919,169 shares of TeraWulf in Q4 2025, valued at approximately $12.32 million, indicating a cautious approach amidst market volatility.
- Value Decline: The value of TeraWulf's position dropped by $10.30 million at quarter-end, a decline influenced by both trading activities and share price movements, highlighting the pressures the company faces in the market.
- Financial Overview: As of February 10, 2026, TeraWulf's market capitalization stood at $6.67 billion with a trailing twelve-month revenue of $167.6 million, although it reported a net income loss of $586.64 million, suggesting ongoing challenges in profitability.
- Market Performance Analysis: TeraWulf's stock surged 224.2% over the past year, significantly outperforming the S&P 500 by 209.74 percentage points, reflecting its strong growth potential in the bitcoin mining sector.
See More
Hodges Capital Management Sells TeraWulf Shares
- Share Reduction Details: Hodges Capital Management sold 919,169 shares of TeraWulf in Q4 2025, with an estimated trade value of $12.32 million, reflecting the firm's strategy to manage market volatility.
- Position Value Decline: Following the sale, the value of TeraWulf's position decreased by $10.30 million, indicating the direct impact of market price fluctuations on the investment portfolio, which may influence future investment decisions.
- Performance Highlights: TeraWulf reported an 87% year-over-year revenue increase in Q3, reaching $50.6 million, including $7.2 million from high-performance computing lease revenue, showcasing the company's strong growth potential in the digital asset sector.
- Market Performance Analysis: Despite TeraWulf's stock price rising 224.2% over the past year, Hodges Capital's reduction in holdings may reflect risk management in high-volatility assets rather than skepticism about the company's fundamentals.
See More
TeraWulf Shifts to AI Mining, Stock Surges 240%
- Market Shift: With Bitcoin prices falling below $100,000, TeraWulf, valued at $7 billion, has successfully pivoted to an AI-focused Bitcoin miner, with its stock rising 52% year-to-date and over 240% in the past year, demonstrating its competitiveness in emerging markets.
- AI Infrastructure Investment: Morgan Stanley has recently initiated coverage of the Bitcoin mining sector, particularly highlighting TeraWulf's execution capabilities in large-scale power infrastructure projects, which is expected to drive its AI infrastructure expansion plans through 2030.
- Profit Model Transition: TeraWulf is shedding Bitcoin holdings to finance its AI computing operations, indicating that AI business profitability is currently stronger, prompting investors to reassess its valuation model.
- Future Potential: Morgan Stanley believes that if TeraWulf is viewed as an AI infrastructure company, its price target could reach $37, more than double its current price of $17, indicating significant growth potential in the AI sector.
See More
TeraWulf Stock Hits New High as Analysts Upgrade Outlook
- Upgraded Earnings Expectations: Analysts now project TeraWulf will lose $0.17 per share in 2026, a significant improvement from the -$1.13 EPS reported last quarter, indicating strong potential in AI infrastructure that may attract more investor interest.
- New Price High: TeraWulf's stock reached a fresh 52-week high last week, driven by optimistic market sentiment regarding its future growth, showcasing investor confidence in the company's transformation.
- Analyst Rating Increases: Firms like Oppenheimer, Citizens, and Cantor Fitzgerald have raised their price targets and issued overweight ratings for TeraWulf, reflecting heightened expectations for improved fundamentals that could further boost the stock price.
- Strong Market Demand: As demand for computing capacity surges, TeraWulf's transition from a former cryptocurrency miner aligns with market trends, leading analysts to believe the company will capture more market share and enhance its competitive position.
See More
TeraWulf Hits New 52-Week High as Analysts Boost Ratings
- New Price High: TeraWulf's stock reached a new 52-week high this week, reflecting strong investor demand for AI infrastructure and indicating growing market confidence in its future growth potential.
- Analyst Rating Increases: Several analysts, including Oppenheimer and Citizens, have raised their price targets and issued overweight ratings for TeraWulf, anticipating continued improvement in the company's fundamentals that could drive stock price higher.
- Improved Earnings Expectations: Analysts now expect TeraWulf to narrow its EPS loss to $0.17 in 2026, a significant improvement from the -$1.13 reported last quarter, showcasing the company's positive developments in AI infrastructure buildout.
- Rising Market Attention: With the upcoming earnings report on February 26, market attention on TeraWulf is increasing, as investors anticipate the company will capture more market share amid surging demand for computing capacity.
See More
TeraWulf Shifts to AI Mining, Stock Soars
- Market Shift: TeraWulf is repurposing its Bitcoin mining computing capacity towards artificial intelligence (AI), a strategic pivot that could potentially double the company's value amid soaring AI demand, showcasing strong market adaptability.
- Financial Performance: Currently, TeraWulf boasts a market cap of $7 billion, with its stock rising 52% year-to-date and over 240% in the past year, reflecting strong investor confidence in its AI infrastructure potential.
- Investor Attention: Morgan Stanley has recently initiated coverage of the Bitcoin mining sector, particularly highlighting TeraWulf as a potential AI infrastructure investment, emphasizing its execution capabilities on large-scale power infrastructure projects, indicating optimistic market expectations for future growth.
- Profit Model Change: TeraWulf is selling Bitcoin to fund its AI computing operations, indicating that AI business profitability is currently stronger, prompting investors to reconsider its valuation model, potentially viewing it as an AI infrastructure company rather than a traditional Bitcoin miner.
See More
Hodges Capital Management Reduces TeraWulf Stake
- Share Reduction Details: Hodges Capital Management disclosed a sale of 919,169 shares of TeraWulf in Q4 2025, valued at approximately $12.32 million, indicating a cautious approach amidst market volatility.
- Value Decline: The value of TeraWulf's position dropped by $10.30 million at quarter-end, a decline influenced by both trading activities and share price movements, highlighting the pressures the company faces in the market.
- Financial Overview: As of February 10, 2026, TeraWulf's market capitalization stood at $6.67 billion with a trailing twelve-month revenue of $167.6 million, although it reported a net income loss of $586.64 million, suggesting ongoing challenges in profitability.
- Market Performance Analysis: TeraWulf's stock surged 224.2% over the past year, significantly outperforming the S&P 500 by 209.74 percentage points, reflecting its strong growth potential in the bitcoin mining sector.
See More
Hodges Capital Management Sells TeraWulf Shares
- Share Reduction Details: Hodges Capital Management sold 919,169 shares of TeraWulf in Q4 2025, with an estimated trade value of $12.32 million, reflecting the firm's strategy to manage market volatility.
- Position Value Decline: Following the sale, the value of TeraWulf's position decreased by $10.30 million, indicating the direct impact of market price fluctuations on the investment portfolio, which may influence future investment decisions.
- Performance Highlights: TeraWulf reported an 87% year-over-year revenue increase in Q3, reaching $50.6 million, including $7.2 million from high-performance computing lease revenue, showcasing the company's strong growth potential in the digital asset sector.
- Market Performance Analysis: Despite TeraWulf's stock price rising 224.2% over the past year, Hodges Capital's reduction in holdings may reflect risk management in high-volatility assets rather than skepticism about the company's fundamentals.
See More
