TeraWulf (WULF) Soars 9.5% on Tech Rally

We recently published 10 Stocks Delivering Double-Digit Gains Effortlessly; 4 Hit Highs. TeraWulf Inc. (NASDAQ:WULF) was one of the best performers on Friday.

TeraWulf snapped a three-day losing streak on Friday, jumping 9.54 percent to close at $14.12 apiece and mimicking the rally in technology stocks as investor sentiment was fueled by the easing tensions between the United States and Europe.

TeraWulf Inc. (NASDAQ:WULF) rallied alongside its counterparts, namely Applied Digital Corp. and IREN Ltd., as investors poured funds back into stocks riding the AI wave, supported by the sector’s rapid growth and strong demand.

Meanwhile, investment firm Needham & Company recently reaffirmed its “buy” recommendation and $21 price target for TeraWulf Inc. (NASDAQ:WULF). The figure still marked a 48.7 percent upside from its latest closing price.

Apart from Needham, the data center operator also received an upgraded rating of “outperform” from Keefe, Bruyette, and Woods (KBW), versus “market perform” previously. It issued a new price target of $24, up from $9.50 prior, amid the market’s underestimation of its gradual pivot to high-performance computing services from Bitcoin mining.

According to KBW, it expects TeraWulf Inc. (NASDAQ:WULF) to drive a massive 505 percent CAGR in its EBITDA through 2027 from its existing lease agreements.

While we acknowledge the potential of WULF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.