Citi's analyst Michael Rollins believes TeraWulf has further growth potential due to strong demand for high-performance computing (HPC) systems, which are essential for artificial intelligence development. The company is transitioning from being viewed primarily as a cryptocurrency mining operation to focusing on energy infrastructure for HPC.
Rollins highlighted that TeraWulf is working to develop and commercialize 250-500 megawatts of data center capacity annually by repurposing industrial real estate with existing power allocations. However, he also pointed out risks, including the company's ability to meet tight project deadlines and potential funding challenges amid rapid development.
Following Citi's positive outlook, TeraWulf's shares increased by over 3%. Overall, the sentiment among analysts is bullish, with all 17 covering the stock rating it a buy or strong buy, indicating strong market confidence in TeraWulf's future prospects