12:16 PM EDT, 10/28/2025 (MT Newswires) -- TeraWulf ( WULF ) is transitioning from bitcoin mining to high-performance computing infrastructure for artificial intelligence applications, Oppenheimer said in a note Tuesday.

The brokerage said TeraWulf ( WULF ) controls high-quality land with access to low-cost renewable electricity and fiber networks, providing 1.2 gigawatts of space and power inventory that positions it to benefit from an estimated 15-gigawatt global data center undersupply.

Oppenheimer expects data center demand to grow about 18% annually over the next five years, driven by rising AI capital spending projected to increase from $60 billion in 2023 to $330 billion by 2027.

The firm noted TeraWulf's ( WULF ) contracts with two high-credit-quality customers, Fluidstack and Core42, and highlighted a pending $3.2 billion debt financing backstopped by Google.

Analysts said the company may need about $10 billion in capital over the next five years and could eventually convert to a REIT, which they view as a potential value catalyst amid growing demand for AI-related digital infrastructure.

Oppenheimer initiated coverage of TeraWulf ( WULF ) with an outperform rating and a $20 price target.

Shares of TeraWulf ( WULF ) were up more than 23% in recent trading.

Price: 16.84, Change: +3.20, Percent Change: +23.46