# TD Cowen Initiates TeraWulf Coverage With Buy Rating as AI Data Centers Gain Momentum

- URL: https://stocks.freetheai.org/news/td-cowen-initiates-terawulf-coverage-with-buy-rating-as-ai-data-centers-gain-bdafea
- Published: 2026-10-12T11:42:39Z
- Category: analyst_ratings; sentiment: bullish; impact: medium
- Symbols: [NASDAQ:WULF](https://stocks.freetheai.org/symbols/NASDAQ-WULF)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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TeraWulf Inc. (WULF) received a Buy rating from TD Cowen, with analyst Michael Elias setting a 12-month price target of $21 per share. The target suggests potential upside of roughly 52.5% from Friday's closing price of $13.77. In pre-market trading following the coverage launch, the stock traded slightly higher, gaining nearly 1%.

The initiation highlights TeraWulf's ongoing transition from Bitcoin (BTC) mining toward hosting artificial intelligence computing infrastructure. TD Cowen noted that investors have priced the company's data center leases conservatively. A key driver behind the valuation is tenant Fluidstack, a cloud provider whose lease payments are partially guaranteed by Google, parent company Alphabet Inc. (GOOG). Google was also granted warrants that could represent an estimated 8% stake in TeraWulf, adding significant big-tech backing to its facilities.

While TD Cowen's outlook is positive, its $21 price target remains below the broader consensus on Wall Street, where 24 analysts hold an average target of $33.58. Shares of TeraWulf have dropped about 54% from their 52-week high of $29.84, though the stock remains up nearly 20% for the year as markets continue evaluating the shift into AI infrastructure.

## Key points

- TD Cowen initiated coverage on TeraWulf Inc. (WULF) with a Buy rating and a $21 price target.
- The $21 target implies roughly 52.5% upside from Friday's closing price of $13.77.
- Google guarantees a portion of lease payments for key AI data center tenant Fluidstack.
- Wall Street analysts hold an average 12-month price target of $33.58 for TeraWulf.
- TeraWulf shares have fallen 54% from their 52-week high but remain up nearly 20% year-to-date.

## Questions and answers

### Why did TD Cowen give TeraWulf a Buy rating?

TD Cowen issued a Buy rating because it believes investors are undervaluing TeraWulf's AI data center leases, which benefit from lease guarantees provided by Google.

### What is the price target for TeraWulf stock?

TD Cowen set a $21 price target for TeraWulf, representing about 52.5% upside from Friday's $13.77 close. Across 24 analysts, the average 12-month target sits higher at $33.58.

### How is TeraWulf shifting from Bitcoin mining to AI?

TeraWulf is converting its former Bitcoin mining facilities into data centers hosting AI computing power, securing tenants like Fluidstack with backing from Google.