William Blair initiates Terawulf stock coverage with outperform rating

William Blair has initiated coverage on Terawulf Inc. (NASDAQ:WULF) with an outperform rating, indicating a positive outlook on the stock. The company has transformed into a leveraged power provider for critical IT load for hyperscalers such as Anthropic and Google, with projected revenue growth of 54% for fiscal 2026. William Blair's base-case fair value of $31 per share implies a significant 92% upside, and the recent pullback in shares is seen as a favorable entry point.

Despite a wider-than-expected loss in the second quarter of 2026, Terawulf's revenue increased to $44.77 million, driven by higher income from high-performance computing leases. The company has secured a 20-year, $19 billion lease with Anthropic for a new AI data center campus in Kentucky, but there are concerns regarding financing and construction risks.

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