One semiconductor stock is making a louder statement in May than anything else in the sector. It's not Nvidia Corp. (NVDA). It's not Micron Technology Inc. (MU).
It's Wolfspeed Inc. (WOLF) — the company that filed for Chapter 11 bankruptcy in June 2025.
The stock surged 100% through May 20, marking the best performance among U.S. semiconductor stocks this month — more than doubling Micron's gain.
The move follows one of the most brutal collapses in recent semiconductor history. Wolfspeed shares remain down roughly 99.6% from their November 2021 peak. At the time, Wall Street viewed the company as one of the highest-conviction electric-vehicle supply chain trades. The stock ultimately imploded under the weight of aggressive capital spending tied to silicon carbide, or SiC, manufacturing expansion.
But now, the exact infrastructure that nearly destroyed Wolfspeed financially is being reframed by some analysts as one of the most strategically important assets in the next phase of the artificial intelligence buildout.
What Citrini Research Said on Wolfspeed
Citrini Research — the independent macro and technology research firm that drew widespread attention in February after publishing its apocalyptic "Global Intelligence Crisis" note warning about mass AI-driven job displacement — argued last week that the next phase of the AI infrastructure trade is shifting beyond GPUs and memory chips toward power and analog semiconductors.
In its latest semiconductor-focused report released last week, Citrini named Wolfspeed as its "single-stock highlight," describing the company as "the platonic ideal" of the firm's preferred setup.
The thesis is straightforward: AI data centers are becoming so power-intensive that traditional server power architectures are no longer sufficient. According to Citrini, next-generation AI racks consuming hundreds of kilowatts will require a complete redesign of power conversion systems, creating massive new demand for silicon carbide components — one of Wolfspeed's core businesses.
The bullish setup, according to Citrini, rests on three separate layers.
The AI Trade Is Moving Beyond GPUs
1) Irreplaceable Assets
Wolfspeed spent roughly $6.5 billion building out global silicon carbide manufacturing capacity. Citrini described the company's Mohawk Valley fab in New York as "the only 200mm SiC fab operating at commercial scale in the entire world," while calling the John Palmour facility in North Carolina "the largest SiC wafer fab ever built."
"AI infrastructure is simply inheriting the EV buildout supply chain," the note said.
2) The Debt Overhang Is Gone
Wolfspeed emerged from a 91-day prepackaged Chapter 11 restructuring on Sept. 29, 2025, eliminating roughly $4.6 billion in debt. The company later refinanced another $476 million in first-lien debt during the fiscal third quarter, reducing annual interest expense by an estimated $62 million. Cash and short-term investments totaled roughly $1.2 billion as of March 29.
"The spending cycle that bankrupted them gives the restructured company an irreplaceable position in the physical supply chain," Citrini wrote. "The setup now, on the other side of bankruptcy, is perfect."
3) The 300mm Silicon Carbide Bet
Citrini also highlighted what it called the "300mm kicker." AI accelerator packages are becoming physically larger as compute density rises. The report notes that AMD's MI300A package measures roughly 75x72mm, while Nvidia's Blackwell package sits near 70x76mm. Increasing silicon carbide wafer diameter from 200mm to 300mm could dramatically improve manufacturing economics for future advanced AI packaging and cooling systems.
In January 2026, Wolfspeed demonstrated production of its first 300mm silicon carbide crystal — making it one of only two companies globally to achieve the milestone. The other is Coherent Corp. (COHR), where silicon carbide is one division among many.
Why Silicon Carbide Suddenly Matters
The next generation of AI infrastructure is becoming constrained by power delivery and heat management, not just compute. Nvidia's roadmap toward ultra-dense AI racks could require 800V DC architectures, dramatically increasing the importance of silicon carbide power semiconductors.
Citrini estimates AI infrastructure could account for roughly half of global silicon carbide demand by 2030. The firm argues that many silicon carbide names are still being valued primarily as EV suppliers, despite potentially becoming critical beneficiaries of AI data-center expansion.
Wolfspeed is also pushing toward 300mm silicon carbide wafers — something only a handful of companies globally have demonstrated.
"WOLF is a crouching tiger getting ready to reveal a dragon," Citrini wrote.
