TeraWulf Stock Soars 16.5% on $515B AI CAPEX Surge
TeraWulf shares jumped 16.5% after being highlighted among AI infrastructure “pick-and-shovel” plays expected to benefit from AI-related CAPEX rising from $390 billion in 2025 to $515 billion in 2026. The bitcoin miner is shifting toward GPU-as-a-service rental income to secure more stable, recurring cash flows independent of LLM software winners.
1. Stock Rally
TeraWulf’s shares surged 16.5% following its inclusion among top AI infrastructure “pick-and-shovel” plays, outperforming peers such as Nebius Group and Cipher Mining. This upside reflects growing investor confidence in its pivot from pure crypto mining to AI hardware services.
2. AI CAPEX Growth
Hyperscaler capital expenditures climbed from $390 billion in 2025 to an estimated $515 billion in 2026, driven by demand for high-performance computing. This expansion creates a supply gap in GPU infrastructure that companies like TeraWulf aim to fill.
3. GPU-as-a-Service Model
TeraWulf leverages its data center and power infrastructure to rent GPU compute capacity, transitioning from one-time hardware sales to recurring revenue streams. This model provides more predictable cash flow and insulation from the volatility of crypto prices and software outcomes.
4. AI Express Opportunity
A separate analysis named TeraWulf as one of two bitcoin miners positioned to capitalize on surging AI infrastructure demand, reinforcing market optimism around its business transformation.