TeraWulf Jumps 6% as NVIDIA’s Guidance Reignites the Compute Trade, Applied Digital Gains 5%

David Moadel

Thu, August 27, 2026 at 6:12 PM GMT+3 4 min read

Quick Read

NVIDIA's $108B Q3 guide and supply-constraint warning sent WULF up 7% and APLD up 5% as contracted power capacity grows scarcer and more valuable.
DTCR rose only 0.8% while individual capacity operators surged, confirming today's flow targets contracted AI power hosts, not the broad data center sector.
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TeraWulf (NASDAQ:WULF) stock is up 6% to $16.90 Thursday morning, while Applied Digital (NASDAQ:APLD) shares are climbing 5% to $28.12. Both names are riding a read-across from someone else's earnings report.

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That report came from NVIDIA (NASDAQ:NVDA), whose stock is up 7% to $224.38 following a blowout print delivered Wednesday afternoon. NVIDIA's Q2 FY2027 results and forward guide have reignited the AI compute trade across capacity operators tied to hyperscaler and AI-lab demand.

Neither TeraWulf nor Applied Digital reported anything of their own today, and no company-specific catalyst has been verified for either name. A firmer crypto tape is a secondary contributor for these mining-heritage operators, but the primary mechanism is the NVIDIA read-across.

Read-Across From NVIDIA's Blowout Print

NVIDIA posted revenue of $96.2 billion, ahead of the $92.1 billion consensus, with net income of $59.7 billion, up 126% year over year. Data center revenue reached $89 billion, up 117%, the line item that most directly reflects the hyperscaler capex fueling AI capacity buildouts.

The forward number is what electrified the compute trade. NVIDIA's Q3 guide sits at $108 billion, plus or minus 2%, which would mark NVIDIA's first quarter above $100 billion in revenue and validates continued acceleration in AI data-center spending.

CFO Colette Kress guided to 70% revenue growth for fiscal 2028 and said the company remains supply constrained. That last phrase is what matters for TeraWulf and Applied Digital: the buildout is capacity-limited, so contracted power and hosting sites become scarcer, and more valuable.

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High-Beta Proxies on a Buildout They Don't Control

TeraWulf and Applied Digital both convert power capacity into AI hosting contracts, which is why NVIDIA's demand signal reaches them at all (we profiled seven of the picks-and-shovels suppliers behind this buildout, from power to cooling, in a free report you can grab here). They function as high-beta proxies on an infrastructure cycle they do not build, priced off the strength of hyperscaler and AI-lab commitments landing further up the stack.

Volatility around these names is also structurally elevated. TeraWulf stock carries a beta of 4.3, and Applied Digital stock carries a beta of 5.8, meaning any move in the underlying compute trade gets amplified before it reaches shareholders.

Peer name IREN Limited (NASDAQ:IREN) sits in the same read-across bucket as a contracted AI-compute landlord, carrying a signed NVIDIA cloud partnership that gives it its own hyperscaler-adjacent anchor.

Sector Fund Move Says This Is a Single-Name Bid

The tell today is what isn't running with them. The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) is up 0.8% to $28.57, a fraction of what the high-beta capacity builders are doing this morning. That gap frames today's flow as a targeted bid for operators with contracted power and hyperscaler-adjacent capacity, and the move is happening at the security level, with the sector basket telling us so.

Retail engagement supports the read. Reddit sentiment around NVIDIA scored 74 bullish at the Thursday 6 a.m. ET boundary, a sharp turn from a 38 bearish reading Wednesday morning before the print.

What to Watch Next

Investors should keep their positions modest here given the beta involved. Intraday reversals in TeraWulf and Applied Digital can be violent, and sizing into strength on read-across trades is where discipline tends to pay off.

The next scheduled catalysts sit further out on the calendar. CB-4 phased delivery at TeraWulf's Lake Mariner site and initial Polaris Forge 2 capacity milestones at Applied Digital are the next name-specific data points investors will price, and any incremental analyst notes touching AI infrastructure hosts post-NVIDIA could shape the next leg.