The semiconductor company is driving the industry transition from silicon to silicon carbide
Schaeffer’s Investment Research was built from scratch on Bernie Schaeffer’s vision of providing accessible professional-grade trading information to retail traders. This remains our mission today, 41 years later. To access the entirety of the Schaeffer’s 41st Anniversary Stock Picks report, click here.
Wolfspeed Inc. (NYSE:WOLF) recently opened the world’s first, largest, and only silicon carbide wafer facility in New York. The semiconductor company is driving the industry transition from silicon to silicon carbide, a technology that has rabid demand in the electric vehicle (EV) and 5G markets. While WOLF’s market value has been cut in half from a peak at $16 billion to $8 billion, this value/price aligns with the highs of 2010, 2013, and 2019.
Despite WOLF’s market-leading technology, eight of 17 brokerages covering Wolfspeed stock still rate it a “hold” or “sell,” indicating Wolfspeed stock is ripe for upgrades that could vault it higher in the short term.
Short interest, meanwhile, has climbed over 32% in the past five months, and now accounts for a healthy 8.3% of the equity’s total available float. At Wolfspeed stock’s average pace of trading, it would take bearish bettors almost six days to buy back their bearish bets; an ample amount of buying power that could hit the market and fuel an unwind.
Chris Prybal is a Senior Market Strategist at Schaeffer’s Investment Research. A lifelong student of the markets, he made his first trades before he even began attending the University of Cincinnati, where he studied finance and treasury management. Prybal’s areas of expertise include option premium buying and selling, and his equity and market research have been cited by Barron’s, MarketWatch, Forbes, Investopedia, and the Cincinnati Business Courier.