TeraWulf (WULF) Rebounds 11% on AI Bets

We recently published 10 Big Names With Easy 10-30% Gains. TeraWulf Inc. (NASDAQ:WULF) was one of the best performers on Tuesday.

TeraWulf bounced back by 11.02 percent on Tuesday to finish at $15.31 apiece, after a semiconductor giant placed further bets on the artificial intelligence sector through a billion-dollar funding in a cloud computing services provider.

TeraWulf Inc. (NASDAQ:WULF) mirrored the rally in technology stocks following news that Nvidia Corp. acquired a $2 billion stake in its counterpart, CoreWeave, reflecting stronger support for the development of the AI industry.

Viewed as a technology benchmark and the key enabler of the AI sector, Nvidia’s investment underscored confidence in the sector despite ongoing concerns of an AI bubble.

For its part, TeraWulf Inc. (NASDAQ:WULF) last year earned the backing of Fluidstack and Google after clinching an agreement with the two firms for the development of high-performance computing (HPC) capacity to support AI needs.

Initially, TeraWulf Inc. (NASDAQ:WULF) and Fluidstack inked an $8.7 billion deal for a 10-year leasing agreement from the former’s Lake Mariner campus in New York.

Eventually, the partnership deepened when both parties announced plans to jointly develop a 168-MW HPC facility in Abernathy, Texas.

Google, on the other hand, would provide a financial backstop to TeraWulf to support expansion initiatives.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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