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Stock Market Today, February 9th: TeraWulf Surges Following Morgan Stanley’s Bullish AI-Driven Initiation

 TeraWulf’s stock moved sharply higher on Monday after Morgan Stanley initiated coverage with an optimistic outlook, emphasizing the company’s potential as an AI-focused data center operator—a strategic shift that drew investor attention away from its traditional identity as a bitcoin miner.

Shares of TeraWulf (WULF) closed Monday's session at $16.65, marking a solid gain of 16.52%. The rally followed Morgan Stanley's initiation of coverage with an Overweight rating and a price target of $37, more than double its closing price. The firm highlighted TeraWulf's unique positioning as a future-ready operator of high-power data centers capable of supporting demanding artificial intelligence workloads.

Trading volume surged to 64.4 million shares—approximately 94% above its three-month average of 33.3 million—reflecting strong institutional and retail interest. Since its IPO in 1994, TeraWulf has delivered a remarkable return of over 1,276% to its shareholders.

How the Markets Performed

The broader market ended Monday in positive territory. The S&P 500 rose 0.45% to close at 6,964, while the Nasdaq Composite advanced 0.90% to finish at 23,239. Within the cryptocurrency mining sector, performance was mixed: Mara Holdings (MARA) declined 2.18% to $8.06, whereas Riot Platforms (RIOT) gained 3.60% to $14.97. This divergence underscores that investor sentiment toward crypto-linked equities is becoming increasingly selective, with company-specific narratives taking precedence.

What This Means for Investors

Morgan Stanley's report effectively reframed TeraWulf's investment thesis. Rather than valuing the company solely on bitcoin mining revenue which is highly correlated to cryptocurrency price swings the analysis focused on its strategic pivot toward AI infrastructure. The firm pointed to TeraWulf's ability to repurpose its energy capacity from bitcoin mining to AI data center operations, a flexibility that sets it apart from many pure-play crypto miners.

This positive initiation builds on a growing constructive analyst outlook. Recently, Needham & Company reiterated its Buy rating on TeraWulf. Additionally, the market has taken note of the company's partnership with Google, which focuses on large-scale AI infrastructure projects. Going forward, investors will be closely watching TeraWulf's progress in converting its power assets for data center use and looking for early signs that its AI-related revenue can scale beyond pilot stages.

Investment Perspective: Should You Consider TeraWulf Now?

Every investment decision should align with your individual risk tolerance, time horizon, and financial goals. Morgan Stanley's bullish coverage certainly provides validation for TeraWulf's strategic direction and may attract growth-oriented investors. For those who believe in the long-term AI infrastructure trend and are interested in a company with access to low-cost, clean energy (including nuclear power), WULF merits further research.

However, it's important to recognize that the stock and the broader crypto-mining sector remains volatile. TeraWulf has experienced significant price swings over its history, and its transition to an AI-focused model is still in progress. Revenue from AI services is not yet a major contributor, and successful execution will depend on securing large, long-term contracts with tech clients.

For context, the analyst team at The Motley Fool Stock Advisor recently released its list of "10 Best Stocks to Buy Now," and TeraWulf was not included. Stock Advisor has a strong track record of identifying high-potential stocks early. Past recommendations like Netflix (2004) and Nvidia (2005) have generated life-changing returns for investors who got in early. More recent picks, such as Tesla (2012) and CrowdStrike (2020), have also delivered extraordinary gains.

This doesn't mean TeraWulf can't be a successful investment, but it does highlight the value of diversification and thorough due diligence. Considering insights from multiple analytical sources before making an investment decision is always a prudent approach.

The Bottom Line

Monday's action placed TeraWulf squarely in the spotlight, thanks to a compelling new narrative: becoming an infrastructure enabler for the AI revolution. Morgan Stanley's coverage successfully shifted the conversation from short-term bitcoin volatility to the long-term potential of high-density computing.

The key going forward will be execution. TeraWulf's ability to translate its energy and infrastructure advantages into substantial, recurring AI-driven revenue will ultimately determine its stock performance in the coming years. For investors, now is a good time to deepen your research, monitor the company's operational milestones, and consider how WULF might fit into a broader, well-diversified portfolio.

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Location: Jember, Kaliwates, Jember Regency, East Java, Indonesia

Comments

  1. alexFebruary 10, 2026 at 6:03 PM

    Solid breakdown on WULF. The shift from Bitcoin mining to AI infrastructure is a compelling narrative, but as you mentioned, execution is everything. It's a high-risk, high-reward play—especially with the current volatility in the crypto-mining sector. Using their low-cost nuclear power for AI could be a game-changer, but I’ll be waiting for more concrete AI revenue data before diving in. Great reminder on the importance of due diligence!

    ReplyDelete
    Replies
    1. AnonymousFebruary 10, 2026 at 6:42 PM

      Spot on! Execution is the bridge between a 'hype' and a 'business.' Do you think WULF’s current valuation is already pricing in too much of that AI potential, or is the market still treating them like a pure-play Bitcoin miner? That gap is where the real opportunity might be

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