TeraWulf Inc. (NASDAQ:WULF) is one of the most active US stocks to buy according to analysts. On December 19, Rosenblatt lowered the firm’s price target on TeraWulf to $20 from $24, while keeping a Buy rating on the shares. The firm warned that Bitcoin miners are facing intense network competition, and the recent plunge in BTC prices has severely hurt their profitability. While companies solely focused on mining are under significant pressure, those that have diversified into HPC are better protected because HPC hosting offers a more stable revenue stream that is independent of crypto market volatility.

In its Q3 2025 earnings report, TeraWulf highlighted a pivotal transition from pure-play Bitcoin mining to HPC infrastructure. The company’s GAAP revenue rose 6% quarter-over-quarter to $50.6 million. This growth was supported by the recognition of TeraWulf’s first $7.2 million in HPC lease revenue, following the energization of 22.5 MW of hosting capacity. While Bitcoin mining production fell 22% to 377 tokens, adjusted EBITDA improved by 25% to $18.1 million, which reflected the higher-margin nature of the new HPC business.

In the said quarter, TeraWulf closed over $4.2 billion in transactions, including $3.2 billion in senior secured notes and $1.025 billion in convertible notes. This capital, backed by a significant 10-year agreement with Google expected to generate $670 million in average annual revenue, fully funds the expansion of the Lake Mariner facility. Despite the operational progress, the company reported a substantial GAAP net loss of $455 million, compared to $18.4 million in the prior quarter.

Looking forward, TeraWulf has significantly increased its annual target for new HPC signings from 100 MW to a range of 250 to 500 MW. This expansion is supported by a 51%-owned joint venture with FluidStack and Google to develop the Abernathy HPC campus in Texas.

TeraWulf Inc. (NASDAQ:WULF), together with its subsidiaries, operates as a digital asset technology company in the US. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania.

While we acknowledge the potential of WULF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.