There’s even more upside left in TeraWulf despite the stock’s already massive 12-month rally, according to Citi. The bank initiated coverage of the energy infrastructure stock with a buy rating. Its price target of $36, implying upside of 39.4% from Friday’s close. TeraWulf has been on fire, soaring more than 500% over the past year. The company, which was previously seen by many on Wall Street as a pure play on cryptocurrency mining, has pivoted toward providing energy infrastructure for high performance computing systems — which are used in the development of artificial intelligence. WULF 1Y mountain WULF 12-month chart Analyst Michael Rollins sees more momentum for the stock as demand for HPC stays strong. “The challenge is that supply constraints for large-scale deployments are not immediately abating, as power transmission remains restrained in key metro markets and community resistance to data centers (aka NIMBY-ism) has picked up. TeraWulf is one of several companies that are addressing the potential bottleneck,” he said to clients. “While deployments are still in their early stages, TeraWulf is establishing a path to develop and commercialize 250-500 MW of data center capacity on an annual basis by remediating and redeveloping industrial real estate with existing power allocations from the grid into hyperscale data centers specifically targeting HPC/AI workloads,” he said. Rollins noted, however, there are several risks for TeraWulf, including whether the company can complete major projects on tight deadlines along with funding risks given “the anticipated rapid pace of development.” Still, he thinks the “valuation still doesn’t reflect WULF’s multi-year growth opportunities.” TeraWulf shares rose more than 3% following Citi’s bullish call. Analysts in general are bullish on TeraWulf. LSEG data shows that all 17 of those covering the stock rate it a buy or strong buy.