Morgan Stanley lifts TeraWulf price target to $42 following strong Q1 results
TeraWulf’s fiscal first quarter 2026 earnings highlight robust high-performance computing leasing activity and significant infrastructure expansion, prompting an upward revision in valuation by the US bank.
Morgan Stanley has raised its price target for TeraWulf Inc to $42 from $41.50, while maintaining an Overweight rating on the shares. The adjustment, made on May 19, follows the release of the company’s fiscal first quarter 2026 results, which underscored strong operational momentum and a solid balance sheet.
The digital asset miner reported $34.0 million in revenue for the quarter, driven largely by $21.0 million in high-performance computing lease revenue. TeraWulf also closed the quarter with a liquidity position of approximately $3.1 billion in cash and restricted cash, providing substantial financial flexibility for its expansion plans.
Operational metrics at the company’s Lake Mariner facility in Texas showed continued progress. As of 31 March 2026, TeraWulf had 60 MW of operational critical IT high-performance computing capacity for Core42. Construction on the CB-3 phase is nearing completion, with the CB-4 and CB-5 blocks remaining on schedule for delivery and rent commencement in 2026.
Beyond its existing operations, the company has expanded its development platform through the acquisition of a site in Hawesville, Kentucky. This acquisition provides immediate access to 480 MW of grid-connected power, positioning the firm to scale its energy-intensive mining and computing operations further.
While Morgan Stanley acknowledged TeraWulf’s potential as an investment, the firm noted that certain other artificial intelligence stocks may offer greater upside potential with less downside risk. TeraWulf operates fully integrated, environmentally clean bitcoin mining facilities in the United States, with its business divided into Digital Asset Mining and HPC Leasing segments.
