TeraWulf stock retreats from 52-week high as profit taking emerges
TeraWulf Inc stock retreated from a 52-week high of $29.84 as investors took profits, closing down 1.74% at $28.48. Short interest decreased to 108.78 million shares, or 25.85% of the float. Despite the pullback, technical indicators remain bullish, with the stock trading well above key moving averages. Bank of America Securities analyst Michael Funk recently initiated coverage with a Buy rating and a $34 price target, forecasting revenue growth to $1.8 billion by 2028 based on a pivot to high-performance computing.
*this image is generated using AI for illustrative purposes only.
TeraWulf Inc shares gave up early gains Monday after climbing to a fresh 52-week high, as investors locked in profits following the stock's recent rally. The stock touched an intraday high of $29.84 before reversing lower to trade down 1.74% at $28.48 at the time of publication. The downward movement coincides with a shift in short interest metrics, which decreased from 110.27 million to 108.78 million shares during the last reporting period. This volume represents 25.85% of the company's publicly available shares sold short, with short sellers requiring 4.02 days to cover positions based on average daily trading volume of 27.07 million shares.
Technical Indicators
From a trend perspective, the chart remains firmly bullish. TeraWulf is trading 8.6% above its 20-day SMA ($26.12), 21.3% above its 50-day SMA ($23.39), 46.1% above its 100-day SMA ($19.42), and 75.5% above its 200-day SMA ($16.17). The 20-day SMA remains above the 50-day SMA, keeping the near-term trend pointed up, while a golden cross (50-day above 200-day) reinforces the longer-term uptrend in place since August 2025.
BofA Securities Outlook
Bank of America Securities analyst Michael Funk recently initiated coverage with a Buy rating and a $34 price objective. The target is based on a 9.5x EV-to-revenue multiple applied to the 2028 revenue forecast. Funk projects the company's capacity pipeline to expand from 60 megawatts to over 1 gigawatt, driven by a strategic pivot toward high-performance computing infrastructure for AI workloads under long-term contracted leases.
| Metric | 2026 Forecast | 2027 Forecast | 2028 Forecast |
|---|---|---|---|
| Revenue | $226 million | $1.06 billion | $1.8 billion |
| Adjusted EBITDA | $63 million | $686 million | $1.25 billion |
Operational Milestones and Risks
In the first quarter of 2026, TeraWulf's contracted capacity totaled 522 megawatts across its Lake Mariner site in New York and the Abernathy joint venture in Texas. Key catalysts include the completion of Lake Mariner buildouts by the end of 2026 and a customer announcement for the Justified Data project in Kentucky, expected online in the second half of 2027. Funk identified financing access, construction delays, and tenant timing as primary risks, estimating that a 10% to 20% slowdown in megawatt delivery could lower 2028 revenue by 6% to 12% and reduce adjusted EBITDA by as much as 12.3%.
How will potential delays in the Lake Mariner buildout or the Justified Data project impact the timeline for reaching the projected 1 gigawatt capacity?
What financing strategies will TeraWulf employ to fund the significant infrastructure expansion required to meet the 2028 revenue targets?
How might increasing competition in the high-performance computing and AI infrastructure space affect TeraWulf's ability to secure long-term contracted leases?
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