TeraWulf's 3-Gigawatt AI Infrastructure Ambition Wins Over Analyst Who Sees More Than 25% Upside

The completion of the Lake Mariner project in New York and obtaining a client for the Justified Data campus in Kentucky would boost WULF prices.

• The Bank of America initiated coverage of TeraWulf with a ‘Buy’ rating and a $34 price target on Monday. 
• The bank cited TeraWulf’s shift from “volatile Bitcoin mining” toward digital infrastructure for high-performance computing, an upside of approximately 26%.
• Analyst Michael Funk pointed to a multiyear development pipeline expected to reach 1.8 to 3.0 gigawatts of critical IT load capacity by 2030.

The Bank of America (BofA) Securities initiated coverage of TeraWulf (WULF) with a ‘Buy’ rating and a $34 price target on Monday, betting on the former Bitcoin (BTC) miner's pivot to artificial intelligence (AI) data center infrastructure.

According to TheFly, analyst Michael Funk valued the stock at 9.5 times his 2028 revenue estimate. Funk attributed the price increase to the company's "transitioning away from volatile legacy bitcoin mining" and building computing capacity to meet AI demand. From the current price of $27, BoFa’s price target sits roughly 26% above where the shares traded on Monday.

He expects its development sites to scale to between 1.8 and 3.0 gigawatts of usable IT capacity by the end of the decade. The endorsement lands after a steep climb in the stock, which has risen by 127% so far this year.

In the near term, Funk said he is watching for TeraWulf to wrap up its New York buildout at Lake Mariner before the year is out, and to name a tenant for its "Justified Data" site in Kentucky. That site is one of two TeraWulf controls in Kentucky. In late May, the company also acquired the roughly 1-gigawatt Muskie Data Campus in the eastern part of the state, a deal that lifted its total infrastructure inventory to about 3.8 gigawatts.

Compute Pulls Ahead Of Mining

The call follows TeraWulf's first-quarter results, in which high-performance computing (HPC) lease revenue overtook Bitcoin mining for the first time. Of $34 million in total revenue, $21 million came from HPC, while mining revenue fell about 50% from the prior quarter to roughly $13 million.

WULF’s stock was up over 5% during early morning trade. On Stocktwits, the retail sentiment around WULF moved to ‘neutral’ from the ‘bearish’ zone, while chatter around it stayed in the ‘high’ levels over the past day.

A Wave Of Bullish Calls

BofA is the latest of several firms to turn bullish on the stock. Last month, B. Riley and Oppenheimer set $32 and $35 price targets for WULF, respectively. That conviction mirrors a wider repositioning among Bitcoin miners. The pivot is industry-wide, with companies like Hyperscale Data (GPUS) also transitioning into AI infrastructure.

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