TeraWulf Inc. (WULF) experienced a 5.17% pre-market plunge on Tuesday, as investors reacted to a price target downgrade from analysts and concerns about the potential impact of AI advancements on the company's business model.
Roth MKM lowered its price target on TeraWulf from $11 to $9, while maintaining a Buy rating on the stock. The firm cited higher costs and ongoing power negotiations as factors contributing to the downgrade. According to the analyst, if TeraWulf can keep its annual average power cost under $0.05/kWh, its mining results should remain stable.
Additionally, TeraWulf disclosed a new risk related to advancements in AI model efficiency, which could potentially threaten the company's data center business model. As AI models become more efficient, the demand for TeraWulf's computing power may be impacted, posing a significant challenge to the company's operations and revenue streams.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。