Wolfspeed Stock Continues To Surge: What's Driving The Momentum?

Wolfspeed Inc WOLF shares are climbing on Tuesday after nearly doubling on Monday. Here’s a look at what’s driving the continued momentum.

What To Know: Wolfspeed shares have soared in recent sessions as investors anticipate a potential turnaround for the company after it filed for Chapter 11 bankruptcy last week.

Wolfspeed said it expects to emerge from the restructuring process with 70% less debt, representing a reduction of approximately $4.6 billion. The company believes it will be better positioned to focus on long-term growth and accelerate its path to profitability, and investors are buying in.

Wolfspeed on Monday announced that it appointed Gregor van Issum as CFO, effective Sept. 1. The announcement sparked some investor optimism with shares closing the session up 95.8% at $2.31.

Van Issum has more than 20 years of experience in tech-focused transformational restructuring and strategic financing. He previously held senior roles at semiconductor manufacturers ams-OSRAM AG and NXP Semiconductors N.V.

“Gregor has helped lead large, multibillion euro businesses with complex manufacturing operations, which will be invaluable to Wolfspeed as we unlock the potential of our purpose-built 200mm platform. The Board and I look forward to collaborating with Gregor as we position Wolfspeed for long-term growth and profitability,” said Robert Feurle, CEO of Wolfspeed.

The CFO addition comes after the company named David Emerson as COO in May as part of the company’s leadership refresh. Wolfspeed said last week that it will continue to operate normally while it goes through its restructuring, delivering silicon carbide materials and devices to customers. The company expects to emerge from the restructuring process by the end of the third quarter.

WOLF Price Action: Wolfspeed shares were up 36.9% at $3.19 at the time of publication Tuesday, according to Benzinga Pro. 

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