Why TeraWulf (WULF) Is Down 17.6% After Huge AI Pivot and Wider Losses – And What's Next

• TeraWulf reported its third-quarter 2025 earnings, revealing revenue of US$50.58 million, up very significantly from the prior year, alongside expanded AI infrastructure partnerships with Fluidstack and Google and over US$5 billion in new financing.
• Despite rapid top-line growth and major customer deals, the company's quarterly net loss increased substantially to US$455.05 million, reflecting heavy investment and rising operational costs during its transition beyond bitcoin mining.
• We'll assess how the massive shift into high-performance computing and AI partnerships could reshape TeraWulf's investment outlook.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

TeraWulf Investment Narrative Recap

To invest in TeraWulf today, shareholders must believe in the company’s pivot away from pure bitcoin mining to an AI-driven, high-performance computing (HPC) infrastructure provider. The latest results confirm surging revenue and major customer wins, but also expose the most pressing near-term question: can heavyweight partnerships and rapid growth offset rising losses and a ballooning cost base? While growth momentum remains a strong catalyst in the short term, the scale of recent losses intensifies concerns around funding needs and balance sheet risks.

The recently announced US$9.5 billion, 25-year joint venture with Fluidstack for a new 168 MW Texas HPC data center directly speaks to TeraWulf’s major transformation. Not only does this deal reinforce the revenue visibility from contracted lease models, but it also sharpens the focus on counterparty and credit risks tied to aggressive multi-year expansion plans.

Yet, even with these high-profile deals, investors should be mindful that if the projected demand from AI and HPC customers does not materialize as expected, especially as Google’s lease backstop decreases, ...

Read the full narrative on TeraWulf (it's free!)

TeraWulf's outlook anticipates $920.8 million in revenue and $157.9 million in earnings by 2028. Achieving this would require annual revenue growth of 85.6% and an earnings increase of $289.6 million from the current -$131.7 million level.

Uncover how TeraWulf's forecasts yield a $21.29 fair value, a 72% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community priced TeraWulf’s fair value between US$4.84 and US$21.29, reflecting wide disagreement. With over US$5 billion in new expansion financing, the company’s heavy debt load is a real factor for its future performance, so consider several viewpoints before forming an opinion.

Explore 7 other fair value estimates on TeraWulf - why the stock might be worth less than half the current price!

Build Your Own TeraWulf Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TeraWulf research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free TeraWulf research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TeraWulf's overall financial health at a glance.

Curious About Other Options?

Our top stock finds are flying under the radar-for now. Get in early:

• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• Find companies with promising cash flow potential yet trading below their fair value.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com