Shares of Wolfspeed (NYSE:WOLF) surged 20% on Wednesday morning, marking a seventh consecutive session of gains after thematic research firm Citrini highlighted the chipmaker in a report focused on artificial intelligence infrastructure opportunities.
The rally followed a research note published Tuesday in which Citrini described Wolfspeed as its “single-stock highlight” within the AI infrastructure sector, pointing to the company’s positioning following its bankruptcy restructuring.
Citrini highlights post-bankruptcy setup
In its paywalled report, Citrini argued that Wolfspeed’s previous aggressive expansion efforts ultimately created a unique opportunity for investors.
“Wolfspeed is the platonic ideal – not only did they spend aggressively to ramp capacity into demand that failed to materialize, they did it so hard that it bankrupted their company,” Citrini said.
“The setup now, on the other side of bankruptcy, is perfect.”
The firm added that “WOLF is a crouching tiger getting ready to reveal a dragon that deserves to not just be priced based on what their fab’s replacement value theoretically is, but reflect the fact that it’s not going to be replaced.”
Stock extends sharp multi-session advance
Wolfspeed shares have climbed roughly 50% over the last six trading sessions as investors rotated back into semiconductor and AI-related infrastructure names.
The broader chip sector has rallied in recent weeks amid continued demand for AI infrastructure components and tightening supply conditions across global memory chip markets.
Shares of semiconductor manufacturers, optical component companies and data storage firms also traded higher on Wednesday morning.
Company restructured debt through bankruptcy process
Last year, Wolfspeed filed for bankruptcy protection as part of a creditor-supported restructuring plan.
The process reduced the company’s debt burden by approximately $4.6 billion, helping reposition the semiconductor manufacturer as it seeks to benefit from long-term AI infrastructure demand.