WULF Should I Buy
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TeraWulf Inc (WULF) appears to be a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. Despite short-term volatility and recent market pullback, the company's transition from Bitcoin mining to high-performance computing (HPC) leasing, coupled with strong analyst support and significant long-term contracts, presents a compelling growth opportunity. The stock's current price level offers an attractive entry point for long-term gains.
The stock is currently in a post-market phase with a price of $13.8922, reflecting a 0.95% post-market gain but a significant -9.72% drop during the regular market session. The MACD is negative and expanding (-0.324), indicating bearish momentum. RSI is at 28.307, suggesting the stock is nearing oversold territory. Key support levels are at $14.274 and $13.148, with resistance at $16.096 and $17.918. The technical indicators suggest caution in the short term but potential for a rebound.
Analysts are highly bullish, with multiple upgrades and increased price targets (e.g., Morgan Stanley's $37 target, B. Riley's $27 target).
Transition to HPC leasing is gaining traction, with significant upside potential highlighted by analysts.
Secured over $12.8 billion in long-term contracts, ensuring revenue stability.
Revenue increased significantly YoY in Q3 2025, showcasing growth potential.
Recent Q4 results showed a loss of $0.29 per share and revenue below expectations, indicating short-term challenges.
Gross margin dropped significantly (-214.68% YoY), reflecting operational inefficiencies.
High implied volatility (110.85%) and low IV rank (10.
suggest uncertainty and limited options attractiveness.
In Q3 2025, revenue increased by 86.92% YoY to $50.58 million, and net income improved significantly, though still negative (-$455.05 million). EPS improved to -1.13, up 1783.33% YoY. However, gross margin dropped to 13.75%, indicating operational challenges. FY2025 revenue was $168.5 million, with $23.1 million in adjusted EBITDA, and the company secured $12.8 billion in long-term contracts, showcasing strong growth potential.
Analysts are overwhelmingly positive on WULF, with multiple Buy and Overweight ratings. Price targets have been raised consistently, with the highest at $37 (Morgan Stanley). Analysts highlight the company's transition to HPC leasing as a key growth driver, with significant upside potential in the AI supercycle.
