TeraWulf Stock Surges Following Major AI Deal and Analyst Upgrades

Shares of TeraWulf (WULF) experienced a significant surge in trading on Monday, climbing over 11% in the morning session. The rally marks a sharp recovery from a two-day pullback and stands in contrast to a broader market decline, with the gains attributed to company-specific developments following a major business announcement.

The rebound is largely driven by a continued positive reaction to the company's 20-year lease agreement with artificial intelligence firm Anthropic. The deal, located at TeraWulf's campus in Hawesville, Kentucky, is expected to generate approximately $19 billion in revenue over its initial term and covers about 401 megawatts of IT capacity. Delivery is scheduled to begin in late 2027, with a full ramp-up targeted for early 2028.

Following the announcement, a wave of Wall Street analysts endorsed the move, boosting their outlooks for the company. Morgan Stanley raised its price target to $72, Needham increased its target to $33, and BofA Securities initiated coverage with a Buy rating and a $34 target. Analysts cited TeraWulf's strategic pivot from primarily bitcoin mining to developing digital infrastructure to meet the high demand from the AI sector.

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Further bolstering investor confidence is TeraWulf's separate agreement to sell its 50.1% stake in the Abernathy joint venture for approximately $530 million. The company has indicated that the proceeds will provide the necessary capital to fund its wholly-owned AI infrastructure projects, a move viewed by analysts as a key strategic advantage.