7 Best Rising Penny Stocks To Invest In Now

1. TeraWulf Inc. (NASDAQ:WULF)

1-Month Stock Price Performance: 29.32%

Number of Hedge Fund Holders: 37

Topping our list of best rising penny stocks is TeraWulf Inc. (NASDAQ:WULF), a digital asset technology company. It is focused on the operation of Bitcoin mining facilities in the United States.

The company has facilities in New York and Pennsylvania. It runs its own mining operations and offers hosting services to third-party clients. The infrastructure it has developed is significant as it features 600 megawatts of owned and scalable resources that support both current Bitcoin mining and the possibility of future expansion into alternative computing hosting.

37 hedge funds tracked by Insider Monkey held positions in the stock valued at $227.158 million in the second quarter.

On September 4, Needham analyst John Todaro initiated coverage of the stock with a Buy rating and a $6 price target. According to Todaro, the company is positioned to be an early entrant in bringing online high-performance computing (HPC) facilities exceeding 100 megawatts.

It could be a game changer, as HPC is expected to grow rapidly, providing an attractive and stable margin business for miners who have excess power capacity. The forecasted revenue for the company in 2026 is striking, with projections of $610 million, of which $350 million could stem from HPC.

In a recent update for August, TeraWulf (NASDAQ:WULF) reported mining 184 Bitcoins, averaging about 5.9 Bitcoins daily. The output reflects a 100% year-over-year increase in self-mining capacity, which now stands at around 10.0 exahashes per second (EH/s).

The company operates two key facilities, the Lake Mariner site with 195 megawatts, and the Nautilus Cryptomine Facility, which has 50 megawatts. Its operational hash rate averaged 8.2 EH/s in August, which shows effective demand response strategies and performance optimizations designed to enhance profitability.

While we acknowledge the potential of TeraWulf Inc. (NASDAQ:WULF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WULF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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