TeraWulf announces 3GW AI infrastructure ambitions, gaining analyst backing.

Bank of America Securities announced Monday the initiation of coverage on TeraWulf (WULF) with a "Buy" rating and a $34 price target, expressing optimism about the former bitcoin (BTC) miner's transition to artificial intelligence (AI) data center infrastructure.

According to TheFly, analyst Michael Funk values the stock at 9.5x his 2028 revenue estimate. Funk attributes the stock appreciation to the company's "shift away from the more volatile traditional bitcoin mining business" and construction of computing capacity to meet artificial intelligence demand. At the current stock price of $27, Bank of America's $34 price target represents approximately a 26% upside from Monday's trading price.

He projects the company's development sites will expand to 1.8 to 3.0 gigawatts of available IT capacity by the end of this decade. The report comes as the stock has surged steeply, rising 127% year-to-date.

Funk stated he is closely monitoring TeraWulf's completion of development construction at the Lake Mariner location in New York by the end of this year, as well as the naming of tenants for the "Justified Data" location in Kentucky. This location is one of two sites controlled by TeraWulf in Kentucky. In late May, the company also acquired the Muskie Data Park, located in the eastern part of the state with a capacity of approximately 1 gigawatt, a transaction that brings its total infrastructure inventory to approximately 3.8 gigawatts.

Prior to this report, TeraWulf released its first-quarter results, with high-performance computing (HPC) rental revenue exceeding bitcoin mining for the first time. Of total revenue of $34 million, $21 million came from high-performance computing, while mining revenue declined approximately 50% from the prior quarter to approximately $13 million.

In early trading, WULF stock rose more than 5%. On Stocktwits, retail sentiment on WULF shifted from the "bearish" range to "neutral," while discussion sentiment around the stock remained at "high" levels over the past day.

Bank of America is the latest firm to turn bullish on the stock. Last month, B. Riley and Oppenheimer set price targets of $32 and $35 for WULF, respectively. This confidence reflects a broader repositioning among bitcoin miners. This shift is industry-wide, with companies such as Hyperscale Data (GPUS) also transitioning to artificial intelligence infrastructure.