Wall Street’s bullish chorus on TeraWulf (WULF) got significantly louder on Monday as Citi initiated coverage with a Buy rating and a $36 price target — implying another 39.4% upside from Friday’s close. The call comes after an already extraordinary 12-month run in which TeraWulf shares have surged more than 500%. Once written off as a pure-play cryptocurrency miner, the company has reinvented itself as an energy infrastructure provider for high-performance computing (HPC) systems — the same infrastructure that powers artificial intelligence model development. TeraWulf shares rose more than 3% following Citi’s initiation on Monday morning.
Citi analyst Michael Rollins laid out a compelling structural thesis for TeraWulf’s continued momentum. The core argument: the supply of large-scale data center capacity is constrained by power transmission limitations in key metro markets and growing community resistance to new data center construction — the so-called NIMBY effect. TeraWulf’s strategy directly addresses this bottleneck. The company is remediating and redeveloping industrial real estate that already carries existing power allocations from the grid — turning dormant or underutilized industrial sites into hyperscale data centers targeting HPC and AI workloads. Rollins projects that TeraWulf can develop and commercialize between 250 and 500 megawatts of data center capacity per year as deployments scale. Notably, all 17 analysts covering WULF on LSEG now rate the stock a buy or strong buy — a rare wall-to-wall institutional consensus.
For retail investors, TeraWulf is a high-conviction but high-risk play on AI infrastructure. Citi’s own initiation note flags key risks: the company must execute major projects on tight deadlines, and the rapid pace of development creates funding risk. That said, the investment thesis is differentiated from simply buying a hyperscaler or an Nvidia supplier. TeraWulf is betting on the real estate and power layer of AI — the physical infrastructure that makes large-scale compute possible. With power scarcity increasingly cited by data center developers as the binding constraint on AI expansion, owning sites with pre-approved grid connections is becoming an increasingly valuable moat. Investors with higher risk tolerance who want AI infrastructure exposure outside of mega-cap names should put WULF on their watchlist — but given the stock’s documented volatility, position sizing discipline is essential before buying in at these levels.
