WULF Stock Heads For Biggest Weekly Drop Since November, Morgan Stanley Says Sell-Off Is ‘At Odds With Underlying Contract Value’
TeraWulf (WULF) shares fell 2.7% in midday trade, on track for their biggest weekly drop since November. Morgan Stanley analyst Stephen Byrd called the sell-off 'at odds with underlying contract value,' maintaining an Overweight rating and $65 price target. WULF is down 23% in October and 27% over the past year. Other Powered Shell providers like Cipher Digital (CIFR), Hut 8 (HUT), Riot Platforms (RIOT), and Galaxy Digital (GLXY) also saw declines.
How this was made
The 30-second read
Why it matters
Morgan Stanley's bullish stance could attract new capital, but the recent price drop indicates market skepticism.
Market read
WULF's steep weekly decline combined with a strong analyst endorsement creates a short‑term trading opportunity.
What to watch
Potential regulatory scrutiny of crypto‑mining conversions and the capital intensity of expanding to 1 GW capacity.
Background
TeraWulf, a former Bitcoin miner, is pivoting to AI and HPC infrastructure, with 71% of Q2 revenue from HPC leasing.
Ticker impact
WULF fell 2.7% midday and Morgan Stanley issued an Overweight note with a $65 price target, implying ~392% upside.
likely upward pressure as traders price in the large upside potential.
Morgan Stanley's rare mispricing call and a $65 target provide a clear catalyst for buying pressure.
Market effects
The note may lift other powered shell providers (CIFR, HUT, RIOT, GLXY) as peers are highlighted.
US crypto‑mining and AI‑infrastructure stocks could see broader interest.
Limited to the niche crypto‑mining sector.
Counterpoint
The stock's recent 23% October decline may reflect deeper demand concerns for AI‑HPC leasing.
Key entities
- analystMorgan Stanley
Issued Overweight note with $65 price target for WULF.
- analystStephen Byrd
Authored the note highlighting mispricing.
