Wolfspeed Inc. (WOLF) stock surged 6.05% on Monday, rising to $86.12 but still trailing its 52-week high of $122.18. The rally was fueled by the company's mixed Q2 fiscal 2025 earnings report and optimism surrounding its future growth prospects.
The semiconductor company benefited from robust demand for its silicon carbide products in the electric vehicle, renewable energy, and AI data center markets. Additionally, government initiatives like the CHIPS Act provided tailwinds, while Wolfspeed's new Gen 4 technology platform promised enhanced efficiency and performance for high-power applications.
However, Wolfspeed faced headwinds from weak demand in industrial and energy sectors, as well as significant underutilization costs at its Mohawk Valley facility due to production ramp-up challenges. Analysts warned that these factors could weigh on the company's near-term revenues and earnings, with third-quarter guidance reflecting a potential year-over-year decline.