Bank of America initiated coverage of TeraWulf with a Buy rating and a $34 price target, highlighting the company's shift from bitcoin mining to AI-focused high-performance computing infrastructure. TeraWulf is expanding its digital infrastructure to meet rising AI demand, with planned capacity growth from 60MW in early 2026 to over 800MW by 2027. Revenue is forecasted to rise from $226 million in 2026 to $1.8 billion in 2028, with strong EBITDA and operating margins expected. Key risks include financing, construction delays, and tenant timing, but long-term leases provide growth and cash flow stability. The global data center market is projected to grow significantly, driven by AI and cloud computing, supporting TeraWulf's growth prospects.
