Why Did Wolfspeed Shares Gain 33% Today?

Analysts bumped their price targets on Wolfspeed Inc WOLF following its Q1 results.
The manufacturer of wide bandgap semiconductors reported Q1 revenue of $156.6 million, up 36% year-on-year, above the consensus of $149.2 million. Non-GAAP EPS loss of $(0.21) beat the consensus loss of $(0.23).
Wolfspeed sees Q2 revenue of $165 million - $175 million above the consensus of $157.9 million. It sees a non-GAAP EPS loss of $(0.16) - $(0.20) above the consensus loss of $(0.23).
Wells Fargo analyst Gary Mobley raised the PT to $105 from $85, implying a 15.5% upside, following relatively strong Q1 results and above consensus Q2 guidance.
The analyst keeps an Equal Weight rating on the shares.
BMO Capital analyst Ambrish Srivastava raised the PT to $90 from $80, implying priced at the current level, but reiterated a Market Perform.
The analyst is optimistic about the company's improving visibility, higher exit revenue run rate, and bottoming gross margins, but he also views shares of Wolfspeed as "reasonably valued."
Srivastava still contends that with its market-leading position in wide bandgap semiconductors such as SiC and GaN, the company stands to benefit from markets ranging from EVs to 5G.
Price Action: WOLF shares closed higher by 33.20% at $121.04 on Thursday.