New York, May 13, 2026, 12:01 EDT
Wolfspeed popped over 21%, up to $65.13 by late Wednesday morning. At one point, shares spiked as high as $77.90. The chipmaker’s market cap swelled to around $2.55 billion on the surge. More than 18 million shares changed hands—well above the stock’s typical volume.
Citrini Research’s call put Wolfspeed back in the thick of the AI infrastructure trade—a notable turnaround for a chipmaker that was once distressed. The firm dubbed Wolfspeed its “single-stock highlight” and described the post-bankruptcy setup as “perfect.” Shares have climbed roughly 50% in the last six sessions, on track for a seventh daily gain according to Investing.com. Investing.com
Timing takes center stage here. AI investors so far have piled into graphics chips, memory, and networking hardware, but Citrini’s May 12 semiconductor memo points in a new direction. The next phase, Citrini argues, demands sharper focus on power and analog semiconductors. That’s where surging AI data-center demand is beginning to strain supply chains originally set up for EVs and industrial power.
Wolfspeed produces silicon carbide chips, a material that outperforms regular silicon for high-power conversion in certain use cases. Reuters notes these chips show up in electric vehicles, solar inverters, and industrial power gear—the same sectors connecting to AI data centers for power management.
The surge has reignited questions around Wolfspeed’s restructuring. After trimming total debt by nearly 70% and slashing annual cash interest expense by about 60%, the company emerged from Chapter 11 bankruptcy proceedings in September, according to Wolfspeed.
Both bulls and bears found ammunition in the latest batch of figures. Wolfspeed posted fiscal third-quarter revenue of roughly $150 million, booked a $120 million GAAP net loss, and reported negative gross margins. Management flagged a 30% sequential jump in AI data-center applications—CEO Robert Feurle cited “accelerated innovation.” CFO Gregor van Issum emphasized the company’s $1.2 billion liquidity. But the outlook didn’t get much brighter: Wolfspeed projected fourth-quarter revenue between $140 million and $160 million and said negative gross margins aren’t going away. Q4 Capital
That’s the catch. Investors can quickly send a stock higher if they suddenly care about limited factory capacity, but Wolfspeed faces the challenge of actually converting AI-driven demand into improved utilization, better yields, and margins that move above zero. Right now, the market is jumping in before any of that shows up on the income statement.
Wall Street’s still holding back. Earlier this month, Susquehanna’s Christopher Rolland, tracked by TipRanks, bumped his Wolfspeed price target up to $40 from $28, but kept a Hold rating. That $40 target? Still below where shares ended Wednesday.
Competitive dynamics haven’t been one-sided. Back in September, Reuters pointed to LSEG data showing Wolfspeed’s valuation multiple in the red—analysts were still penciling in losses. Onsemi and NXP, though, had positive forward P/E ratios. The same article highlighted that legacy shares got wiped out during the restructuring, so previous shareholders were left with just a small piece of the new equity.
At this point, Citrini has turned attention away from Wolfspeed’s survival, raising the issue of whether its factories might now carry extra weight in the rush to supply AI power. That’s pushed the shares higher. The margin story, though, still isn’t resolved.
