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On Wall Street, few things create chaos quite like a short squeeze. It happens when traders heavily bet against a stock, only for the shares to suddenly reverse higher. As prices climb, short sellers rush to buy back stock to limit losses, which pushes shares even higher in a self-feeding rally. Sometimes, the bigger the bearish crowd, the sharper the comeback rally can be.
Hence, investor eyes are suddenly back on Wolfspeed, (WOLF), as the silicon carbide pioneer has been through a brutal stretch. Rising manufacturing costs, mounting debt, and a Chapter 11 filing last year nearly crushed investor confidence. But after emerging from bankruptcy with a much cleaner balance sheet, WOLF stock staged a stunning comeback, surging sharply and reminding traders that the company still plays an important role in the growing EV, defense, and industrial semiconductor markets.
