Wolfspeed (Wolfspeed (WOLF)) shares skyrocketed more than 24% on Wednesday after research firm Citrini named the company its top pick in the AI infrastructure space. The call comes on the heels of Wolfspeed's recent bankruptcy restructuring, which Citrini believes positions the company to benefit from surging demand for AI-driven power and semiconductor infrastructure.
According to media reports, Citrini described Wolfspeed as its "single-stock highlight" in the AI infrastructure sector, arguing the company could emerge as a key beneficiary of the massive investments being made in AI data centers and the power systems that support them.
Fiscal Q4 Outlook And Earnings Update
Wolfspeed recently reported third-quarter fiscal 2026 results that fell short of Wall Street expectations. The company posted an adjusted loss of $3.26 per share, missing analyst estimates for a loss of $2.02 per share. Revenue came in at $150.2 million, below consensus estimates of $194.8 million.
For the fiscal fourth quarter, Wolfspeed expects revenue between $140 million and $160 million. The company also said operating expenses are expected to remain flat, while gross margins will likely stay negative.
Wolfspeed Technical Analysis
Wolfspeed's stock has shown impressive long-term performance, up 1475.45% over the past 12 months. Currently, the stock is trading significantly above its moving averages, with the 20-day simple moving average (SMA) at $33.62, indicating that it is 82% above this level. The 50-day SMA is at $24.47, and the stock is 150.1% above this moving average as well.
The Relative Strength Index (RSI) currently sits at 83.24, indicating that the stock is in overbought territory, suggesting a potential pullback may be on the horizon as the stock has moved significantly higher in a short period. This high RSI level indicates that the stock may be stretched, and traders should be cautious of a correction.
Wolfspeed Inc develops and manufactures semiconductor technologies based on silicon carbide (SiC) for power electronics applications. Its product portfolio includes SiC MOSFETs, Schottky diodes, and power modules used in various applications, including electric vehicles and renewable energy.
The company's focus on silicon carbide technologies positions it well in the growing markets of electric vehicles and renewable energy, making it a key player in the transition to more efficient power solutions. As Wolfspeed continues to innovate and expand its product offerings, its financial performance and market position are likely to strengthen.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price forecast of $20.00. Recent analyst moves include:
- Piper Sandler: Overweight (Raises forecast to $20.00) (Feb. 5)
- Susquehanna: Neutral (Lowers forecast to $20.00) (Jan. 22)
- Susquehanna: Neutral (Raises forecast to $30.00) (Oct. 22, 2025)
MarketDash Edge Rankings
Below is the MarketDash Edge scorecard for Wolfspeed, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 99.74) — Stock is outperforming the broader market.
The Verdict: Wolfspeed's MarketDash Edge signal reveals a strong momentum-driven story, indicating that the stock is currently outperforming its peers. This momentum suggests that investor interest remains high, but caution is warranted given the overbought conditions indicated by the RSI.
Wolfspeed Price Action
WOLF Stock Price Activity: Wolfspeed shares were up 24.65% at $66.96 at the time of publication on Wednesday, according to market data.
