Morgan Stanley keeps TeraWulf Overweight, sees 463% upside tied to Anthropic lease
TeraWulf shares extended their October slide on Thursday as rising borrowing costs weighed broadly on AI infrastructure stocks, according to a Barron's report republished by TMTPost. Morgan Stanley analyst Stephen Byrd reiterated an Overweight rating and a $65 price target, implying roughly 463% upside, arguing the selloff does not reflect the true value of the company's data center contracts. The report cites TeraWulf's 20-year lease with Anthropic, expected to generate about $19 billion in contract revenue, and Morgan Stanley's expectation that an additional 336 megawatts of data center capacity will come online by 2027.
The case shows how AI data center demand turns long-term compute contracts into a core part of investor valuations, while highlighting how sensitive these stocks are to interest rates and borrowing costs.