Up 89% in a Month, Is It Too Late to Buy This Surging Semiconductor Stock?

Silicon carbide chip maker Wolfspeed, Inc. (WOLF), once a serious underperformer lagging behind its semiconductor peers and the broader market, has suddenly caught fire. While several high-profile chip stocks surged on the back of artificial intelligence (AI) advancements over the past year, Wolfspeed has faced a starkly different fate. With shares plunging deep into the red over the past year and YTD, the chip maker has struggled under the weight of financial setbacks and costly operational challenges, leaving investors wary in a market that’s otherwise buzzing with opportunity - and attracting the attention of activist investors, as well. 

Yet, in a stunning turn of events, Wolfspeed's shares have exploded in the past month, up 89%, driven by a flurry of positive developments that have reignited investor enthusiasm toward the stock. A key catalyst for WOLF stock is the announcement of a whopping $750 million funding boost from the U.S. CHIPS Act, which aims to support the company’s expansion plans in North Carolina and New York.