Why did KBW upgrade TeraWulf stock?

KBW upgraded TeraWulf because they believe the market is underestimating the company's future earnings from shifting to AI and high-performance computing leasing.

What is TeraWulf's new business focus?

TeraWulf is transitioning its business model from primarily bitcoin mining to leasing out its data center capacity for AI and high-performance computing needs.

What is TeraWulf's future revenue projection?

Analysts project that by 2026, HPC leasing will generate over two-thirds of TeraWulf's revenue, with bitcoin mining becoming largely insignificant by 2027.

Home / Business and Economy / TeraWulf Shifts to AI, Skyrockets Analyst Price Target

TeraWulf Shifts to AI, Skyrockets Analyst Price Target

2 Jan

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Summary

KBW upgrades TeraWulf (WULF) to 'outperform' with a $24 price target.
Company pivot to AI/HPC leasing is underestimated by the market.
HPC leasing to drive significant EBITDA growth through 2027.

TeraWulf Shifts to AI, Skyrockets Analyst Price Target

Investment bank KBW has significantly upgraded TeraWulf (WULF), moving its rating to 'outperform' and substantially increasing the price target from $9.50 to $24.

The upgrade is driven by KBW's assertion that the market is currently underestimating the substantial earnings potential stemming from TeraWulf's strategic pivot away from traditional bitcoin mining towards AI and high-performance computing (HPC) leasing.

Analysts project that this shift will lead to a 505% EBITDA compound annual growth rate from 2025 to 2027, with HPC leasing expected to constitute the majority of the company's revenue by 2026.

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