TeraWulf announces 3-gigawatt AI infrastructure capacity plans, winning analyst endorsement with 25%+ upside potential.

Bank of America Securities initiated coverage of TeraWulf (WULF) with a "Buy" rating and a $34 price target on Monday, backing the company's pivot from Bitcoin mining to artificial intelligence data center infrastructure. Analyst Michael Funk valued the stock at 9.5 times his 2028 revenue estimate, citing TeraWulf's "transitioning away from volatile legacy bitcoin mining" and shift toward building computing capacity to serve AI demand. The price target represents approximately 26% upside from the $27 level where shares traded at the time of the call.

Funk's thesis rests on TeraWulf's multiyear development pipeline, which he expects will reach between 1.8 and 3.0 gigawatts of usable IT capacity by the end of the decade. Near-term catalysts include completion of the Lake Mariner buildout in New York before year-end and securing a tenant for the Justified Data campus in Kentucky. In May, TeraWulf acquired the roughly 1-gigawatt Muskie Data Campus in eastern Kentucky, bringing total infrastructure inventory to approximately 3.8 gigawatts.

The endorsement arrives as the company's business fundamentals are shifting decisively toward data center operations. In first-quarter results, high-performance computing lease revenue of $21 million surpassed Bitcoin mining revenue for the first time—mining dropped roughly 50% quarter-over-quarter to $13 million out of $34 million in total revenue. The stock has climbed 127% year-to-date, and WULF joins a broader industry pivot into AI infrastructure; Hyperscale Data (GPUS) is similarly repositioning its Bitcoin mining operations.

BofA's initiation follows bullish calls from other major firms. B. Riley and Oppenheimer set price targets of $32 and $35 respectively for WULF earlier in the year.