Can an Expanding Clientele Push WULF Stock's Top-Line Growth?

TeraWulf’s WULF prospects are expected to benefit from an expanding clientele. This vertically integrated owner and operator of next-generation digital infrastructure, purpose-built to support bitcoin mining and high-performance computing (HPC) workloads, inked a deal with Fluidstack, a premier AI cloud platform that builds and operates HPC clusters. The deal represents roughly $6.7 billion in contracted revenues, with total contract revenues expected to hit $16 billion.As per the deal, TeraWulf will deliver more than 360 MW of critical IT load at its Lake Mariner data center campus in Western New York. The Lake Mariner facility can expand up to 500 MW in the near term and up to 750 MW with targeted transmission upgrades. The deal is supported by Alphabet, which is backing Fluidstack’s lease obligations. Alphabet is also providing $3.2 billion of credit support, and its total pro forma equity ownership in TeraWulf increases to approximately 14%.TeraWulf is on track to deliver 72.5 MW of HPC colocation capacity under its data center lease agreements with Core42 Holding for GPU compute workloads. The WULF Den and CB-1 leases with Core42 are expected to start generating revenues in the third quarter of 2025.WULF Faces Tough CompetitionTeraWulf faces stiff competition from the likes of IREN Limited IREN and Applied Digital APLD in the bitcoin mining and HPC markets.IREN Limited has doubled its AI cloud capacity to 23k GPUs through the purchase of an additional 12.4k GPUs for roughly $674 million. This comprises 1.9k NVIDIA H100s and H200s, 19.1k NVIDIA B200s and B300s, 1.2k NVIDIA GB300s and 1.1k AMD MI350Xs. IREN now expects to achieve $500 million in AI Cloud annualized run-rate revenue (ARR) by the first quarter of fiscal 2026. IREN is on track to achieve $1.25 billion in annualized revenues, with roughly $1 billion coming from bitcoin mining, and $200-$250 million from AI Cloud (by December 2025). IREN expects to scale from 1.9k to 10.9k GPUs in the coming months.Applied Digital is benefiting from robust demand for data center infrastructure, and the growing focus on energy efficiency is a noteworthy development in the data center industry. Strong spending by hyperscalers, which is expected to exceed $350 billion in 2025, bodes well for APLD. Applied Digital’s Data Center Hosting business provides energized infrastructure services to crypto mining customers. The company currently operates sites in Jamestown and Ellendale, ND, with a total hosting capacity of approximately 286 megawatts (MWs).WULF’s Share Price Performance, Valuation & EstimatesTeraWulf shares have appreciated 103% year to date, outperforming the broader Zacks Finance sector’s return of 14.8% and the Zacks Financial Miscellaneous Services industry’s 9.7%.WULF Stock’s Performance Image Source: Zacks Investment Research The WULF stock is trading at a premium, with a trailing 12-month price/book of 26.77X compared with the industry’s 3.81X. TeraWulf has a Value Score of F.WULF Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 earnings is pegged at a loss of 27 per share, wider by 9 cents over the past seven days. The company reported a loss of 19 cents per share in 2024.  TeraWulf Inc. Price and Consensus TeraWulf Inc. price-consensus-chart | TeraWulf Inc. Quote TeraWulf currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Digital Corporation (APLD): Free Stock Analysis Report IREN Limited (IREN): Free Stock Analysis Report TeraWulf Inc. (WULF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks