Morgan Stanley Sees 129% Upside in TeraWulf, Upgrades Allegro After 29% Revenue Jump
Morgan Stanley’s Stephen Byrd rates TeraWulf Overweight with a $37 target implying 129% upside after its stock climbed 243% over 12 months on 2.8 GW of sustainable data-center capacity and 90% zero-carbon power at Lake Mariner. Morgan Stanley also upgrades Allegro MicroSystems to Overweight following a 29% surge to $229.2 M in Q3 revenue and a 58% YTD share gain.
1. Morgan Stanley Highlights Two Momentum Stocks
Morgan Stanley identifies two high-momentum names—TeraWulf and Allegro MicroSystems—on the strength of robust fundamentals, solid price trends and secular tailwinds in AI-capable data centers and semiconductor markets.
2. TeraWulf Upgrade and Rationale
TeraWulf’s shares have soared 243% over the past year, fueled by rising revenues and five campus sites providing 2.8 GW of low-cost, sustainable power, including 90% zero-carbon energy at its Lake Mariner facility. Analyst Stephen Byrd assigns an Overweight rating and $37 target, seeing 129% potential upside based on $8–10 per watt valuation of untapped contract capacity and a 50% success rate on 250 MW annual DC growth.
3. Allegro MicroSystems Upgrade and Performance
Allegro’s stock is up 58% YTD after fiscal Q3 revenue reached $229.2 M, a 29% year-over-year increase that topped estimates by $8.34 M, and EPS doubled to $0.15. Morgan Stanley’s Joseph Moore upgraded the semiconductor supplier to Overweight, citing strong adoption of its sensor and power ICs in EV, automotive safety and industrial automation markets.