TeraWulf Shares Hit 2026 Lows as Morgan Stanley Sees Severe Mispricing

TeraWulf Inc. (WULF) shares slipped during midday trading on Thursday, keeping the stock on track for its largest weekly decline of 2026. The drop pushed shares toward their lowest level since December amid broader weakness in chip and technology infrastructure equities. Despite the recent downturn, investment analysts reiterated a highly positive outlook on the company, citing a severe disconnect between the current stock price and underlying asset value.

Analysts maintained an Overweight rating and a $65 price target on the stock, implying significant upside potential from current trading levels. They noted that recent market pressure overlooks value creation from ongoing commercial agreements. TeraWulf, which previously focused on Bitcoin mining, shifted its business strategy in 2024 toward artificial intelligence and high-performance computing infrastructure. High-performance computing leasing generated 71% of total revenue in the second quarter.

Key catalysts ahead include commercialization discussions and lease agreements at the company's Muskie campus, where contracted electric-service capacity is expanding to 1 gigawatt. Investors will also watch for European expansion progress and credit updates, alongside performance across sector peers like Cipher Digital Inc. (CIFR) and Hut 8 Corp. (HUT).