Why Wolfspeed Stock Skyrocketed Today
Key Points
Wolfspeed stock posted double-digit gains today despite pressures shaping the broader market.
The silicon carbide stock has seen big gains since the company completed a corporate restructuring.
Wolfspeed is benefiting from meme stock momentum, but some investors are also betting on emerging national security significance for its tech.
- 10 stocks we like better than Wolfspeed ›
Woflspeed (NYSE: WOLF) stock scored another round of huge gains Thursday. The silicon carbide (SiC) specialist's share price rocketed 16.7% higher in the daily session. Meanwhile, the S&P 500 index fell 0.3%, and the Nasdaq Composite index fell 0.1%.
Image source: Getty Images.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Wolfspeed stock soars as company reduces debt
Wolfspeed confirmed today that the corporate restructuring it completed after emerging from bankruptcy protections had resulted in the company's debt load being reduced by 70%. On the other hand, Wolfspeed's debt reduction was already something that investors broadly anticipated. While the reduction of debt is a positive development for the new corporate entity, the gains that it saw today in response to an already expected development may indicate that meme stock trading was a driving factor in the gains.
Wolfspeed rallies as U.S.-China dynamics come back into focus
China will be limiting its exports of rare-earth minerals. Securing access to rare-earth minerals has been a key priority in U.S. attempts to negotiate a trade deal with China.
If relations between the U.S. and China continue to worsen, Wolfspeed could face less competition from Chinese SiC providers. Some investors are also betting that SiC chips could play a bigger role in powering data centers for artificial intelligence (AI) and other applications that result in subsidies from the U.S. government. While excitement surrounding these catalysts could continue to help lift Wolfspeed stock, the current margins generated by the company's SiC products make the stock a very risky investment.
Should you invest $1,000 in Wolfspeed right now?
Before you buy stock in Wolfspeed, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Wolfspeed wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $654,835!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,159,218!*
Now, it’s worth noting Stock Advisor’s total average return is 1,081% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 7, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Wolfspeed. The Motley Fool has a disclosure policy.
Recommended Articles
