This Stock Is Growling and Howling Out of My Screen
Let's check the market action and how this data-center play shows promise.
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Let's look at how the market is handling the aftermath of last week's meltdown and then huge rally on Friday, and then examine a stock on my radar.
So far, breadth is poor on Monday morning, as investors digest the big Friday bounce. The S&P 500 and Nasdaq 100 are slightly positive, but small caps are in the red. Strength in the Magnificent Seven (MAGS) , Nvidia (NVDA) , and Microsoft (MSFT) is helping the bullish cause, but only about 35% of stocks are trading in positive territory so far.
It isn't too surprising that there isn't better follow-through this morning. Investors who were caught in the meltdown last week are happy to reduce some troublesome positions at higher prices, and dip buyers aren't in the mood to chase strength right now.
Investors are still trying to sort out the winners and losers in the AI sector, and there are lingering concerns about valuation, particularly in growth and speculative names with high P/Es. The biotechnology group I actively trade is struggling today, but I see some good opportunities.
TeraWulf Is Howling
One name that is standing out on my screens today is TeraWulf (WULF) . I have held a position for a while and have actively traded the stock, but I'm adding some size today as it tests overhead resistance.
WULF is a vertically integrated digital infrastructure company that has shifted its primary focus from Bitcoin mining to high-performance computing (HPC) and AI hosting. The company operates large-scale data centers powered predominantly by zero-carbon energy sources, such as nuclear and hydroelectric power.
The data-center group has been increasingly volatile recently due to concerns about hyperscalers' high capital spending. Ironically, the group has been under pressure even though companies like Meta (META) , Alphabet (GOOGL) , and Amazon (AMZN) are increasing CapEx spending.
The Google Connection
WULF has an unusual advantage over some other data centers because of its connection to Google through a three-way arrangement with Fluidstack, an AI cloud platform. Google has provided multi-billion-dollar financial "backstops" (guarantees) for Fluidstack's lease obligations at TeraWulf's facilities. As of late 2025, this backing reached approximately $3.2 billion, effectively de-risking TeraWulf's massive infrastructure projects. In addition, Google received warrants to acquire a significant portion of TeraWulf's common stock. Google's potential equity ownership in WULF is somewhere around 14%.
Morgan Stanley Initiation
What caught my attention today is that Thefly.com reports that Morgan Stanley (MS) initiated coverage of TeraWulf with an Overweight rating and a $37 price target. The company has a "strong" track record of signing agreements with data center customers and has experience in building a wide range of power infrastructure assets.
The primary driver for Morgan Stanley's bullishness is the premium being paid for "time to power." In the current AI arms race, hyperscalers like Google and Nvidia-backed partners (like Fluidstack) are desperate for data center capacity that can be brought online immediately.
Beyond Bitcoin Mining
The market still regards WULF as a Bitcoin miner, which is part of the reason it has been suppressed. It isn't just a miner anymore. Morgan Stanley values its sites using a "REIT endgame" framework and estimates the present value of converting its Bitcoin sites to Data Centers at approximately $8 per watt.
Just last week, WULF announced the acquisition of two huge sites in Kentucky and Maryland, adding 1.5 gigawatts of capacity. This brings their total pipeline to 2.8 GW, providing a long runway for the "Bitcoin-to-DC" conversion Morgan Stanley finds so attractive.
The Game Plan
This good news could be the catalyst that pushes WULF out of its trading range.
$16.00 is the key area, and it is being tested today with a morning high of $16.24. The stock may need more time to build a platform for a breakout, but I'm adding to my position now and will be looking for additional entries as it develops.
At the time of publication, DePorre was long WULF
