Wolfspeed: The Best Bet On The Return Of The AI Trade

Wolfspeed transitioned from post-bankruptcy turbulence to a period of relative calm, but recent months have brought renewed volatility. A bull case for a recently bankrupt firm with negative gross margins seems impossible — but there's a rational case for long-term upside. A growing role for silicon carbide in the AI buildout should drive a far larger market, and Wolfspeed's capacity has real value. Risks are nearly self-evident, and near-term trading may be weak. But for AI bulls, WOLF should be at the top of the list.

Last September, I wrote that following a chaotic emergence from bankruptcy, Wolfspeed, Inc. ( WOLF ) stock looked normal again . “Normal” was meant in context, after Wolfspeed's pre-bankruptcy equity was exchanged at a ratio that many shareholders