TeraWulf stock rises as market sees buying opportunity in New York data-center moratorium, signaling investor confidence in policy reversal.

TeraWulf (WULF) shares initially sold off sharply after New York Governor Kathy Hochul imposed a one-year moratorium on constructing data centers larger than 50 megawatts, but the stock recovered Wednesday as Wall Street analysts argued the market had overreacted to the policy.

WULF fell 7% on Tuesday following the announcement, then declined a further 4% early Wednesday before rebounding approximately 3.75% in afternoon trading. By day's end, the stock was up 1.9%.

Multiple analysts maintained bullish stances on the company, arguing the moratorium poses limited near-term risk. Cantor Fitzgerald reiterated its Overweight rating and $37 price target (implying 91% upside from Tuesday's close), noting that TeraWulf's existing leases remain unaffected and the value of its contracted leases already exceeds its current market valuation. Rosenblatt similarly reiterated its Buy rating and $30 price target (55% upside), characterizing the selloff as reflecting "more headline risk than structural risk" since the enforcement mechanism "simply doesn't reach the company's existing NY platform." Rosenblatt added that TeraWulf now maintains the majority of its power footprint outside New York. Needham also reiterated its Buy rating and $33 price target (70% upside), stating that TeraWulf's Lake Mariner site would not be affected by the moratorium.

TeraWulf operates two sites in New York—its established Lake Mariner data-center campus and the under-development Cayuga site—which created the initial market concern. However, the company has increasingly diversified its geographic exposure.

Retail sentiment for WULF on Stocktwits remained extremely bullish, with message volume categorized as high. Over the past 30 days, message volume surged 206% while the ticker's watcher base rose 7.6%, reflecting steady growth in retail interest. Year-to-date, WULF has gained nearly 70%.