Bernstein AI Power-Lease Thesis Lifts TeraWulf, Cipher; Target $36/$32

Bernstein started coverage on TeraWulf (WULF) and Cipher Mining (CIFR) with Outperform ratings, using an “AI power lease” thesis: former Bitcoin miners can act as “power landlords” by monetizing large, grid-connected electricity and data-center infrastructure under contract-backed HPC (high-performance computing) demand. The bank projects total AI-related revenue across its covered universe to rise from about $1.2B (2026) to $10.7B (2030). It forecasts TeraWulf AI revenue at $1.7B and Cipher at $1.2B. For traders, the key is execution risk versus contract visibility, not short-term Bitcoin price action. New color from the later update: TeraWulf’s transition is already visible. In Q1 2026, revenue was $34M, with 60% coming from HPC leases rather than Bitcoin mining, and the company has amassed over $12B in long-term contracted HPC revenue. Bernstein’s view also notes that the stock reaction was muted because both names had already rallied in 2026 as AI optimism was partially priced in. Context: Bernstein set price targets at $36 (WULF) and $32 (CIFR). It follows other Wall Street calls—Morgan Stanley (Overweight, ~$37–$38) and Jefferies (Buy, $32 for CIFR and $28 for WULF). For crypto traders, this supports continued “AI + power” capital rotation, but the longer-term upside depends on hyperscaler compute demand staying on track.