Wolfspeed Stock Soars 8.27% Amid Short Squeeze Speculation

Wolfspeed's stock surged by 8.27% in pre-market trading on July 14, 2025, marking a significant rise despite the volatility experienced earlier in the week.

Wolfspeed, a specialist in silicon-carbide technology, has seen its valuation fluctuate dramatically. The stock experienced substantial gains on Monday and Tuesday, but faced notable sell-offs later in the week. This volatility has left investors questioning the sustainability of the company's recent rally.

Analysts suggest that the current surge in Wolfspeed's stock price may be driven by a short squeeze, where investors are buying up shares to drive up the price and force short sellers to cover their positions. However, there is no compelling reason to hold the stock unless investors are betting on this short squeeze to continue.

Looking ahead, while Wolfspeed's stock could see further short-term gains, the long-term outlook remains uncertain. The company's highly volatile nature makes it a risky investment, and investors should proceed with caution.