Oppenheimer Initiates Coverage on TeraWulf (WULF) with Outperform Rating

TeraWulf Inc. (NASDAQ:WULF) is one of the 12 Best Performing Stocks in the Last 3 Months. On October 28, Oppenheimer initiated coverage on TeraWulf Inc. (NASDAQ:WULF), giving the stock an Outperform rating and setting the price target at $20.

Oppenheimer highlighted TeraWulf Inc.’s (NASDAQ:WULF) focus on becoming a high-performance computing (HPC) AI infrastructure company.

The research firm noted that TeraWulf Inc. (NASDAQ:WULF) has high-quality land with low-cost renewable electricity and fiber networks. This has helped the company win contracts with major AI industry clients.

Oppenheimer pointed out that demand for AI infrastructure has grown faster than expected over the last three years. The firm expects data center demand to grow 18% each year for the next five years. Oppenheimer believes there is a big shortage of about 20%, or 15 gigawatts, of capacity.

According to Oppenheimer’s analysis, TeraWulf Inc. (NASDAQ:WULF) currently has 1.2 gigawatts of space and power inventory. The company has contracts for over 400 megawatts of capacity and 250 megawatts of Bitcoin mining capacity that can be converted.

TeraWulf Inc. (NASDAQ:WULF) develops, owns, and operates industrial-scale data center infrastructure in the US that is designed specifically for Bitcoin mining and high-performance computing (HPC) hosting.

While we acknowledge the potential of WULF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.