Wolfspeed (WOLF) surges 16.67% on post-bankruptcy restructuring, hits 4-year high.

Wolfspeed (WOLF) surged 16.67% in Thursday’s session, marking its fourth consecutive day of gains and a cumulative rise of 45.34% over the past four trading days. The stock reached an intraday high of $34.28, its highest level since October 2025, driven by a 20.55% swing in volatility as investors reacted to the company’s post-bankruptcy restructuring.

The stock’s meteoric rise follows Wolfspeed’s emergence from Chapter 11 bankruptcy in late September 2025, which reduced its debt by 70% and restructured ownership to prioritize creditors and strategic partners. The process saw existing shareholders retain only 3–5% of the reorganized company, while Renesas Electronics and other stakeholders gained majority control. This shift created a cleaner balance sheet but also triggered significant shareholder dilution, raising questions about the alignment of interests between new stakeholders and the broader market.

Despite the financial restructuring, Wolfspeed continues to grapple with operational challenges. For Q4 FY2025, the company reported a net loss of $669 million, with gross margins slipping to 2% as scaling production and pricing pressures persist. Cash flow remains a critical constraint, with operating cash burn reaching $242.5 million in the quarter. However, the company’s $12 billion order backlog and leadership in silicon carbide (SiC) technology—key to electric vehicles, AI, and industrial power—position it to capitalize on a market projected to grow to $17 billion by 2029.

Analyst sentiment remains divided, with a mixed consensus of one “Strong Buy,” two “Hold,” and one “Strong Sell” ratings. The stock’s current price of $34.28 far exceeds the mean analyst price target of $3.75, highlighting the speculative nature of the investment. While the restructuring has stabilized the balance sheet, investors are cautiously monitoring Wolfspeed’s ability to convert its technological edge into consistent profitability. CEO Robert Feurle has emphasized a “self-funded” growth strategy, but operational inefficiencies and competition from rivals like Infineon and STMicroelectronics could test the company’s long-term viability.

The market’s emotional response to Wolfspeed’s restructuring—exemplified by a 1,800% rebound after an 85% single-day drop—underscores the stock’s high volatility. With macroeconomic factors like EV adoption and AI infrastructure spending influencing demand for SiC chips, the company’s path to profitability remains uncertain. For now, Wolfspeed’s stock reflects a high-risk, high-reward proposition, driven by its strategic positioning in a transformative industry but weighed by ongoing financial and operational hurdles.