Wolfspeed surging after filing for bankruptcy, investors optimistic about debt restructuring

Wolfspeed (WOLF) shares surged nearly 100% despite filing for Chapter 11 bankruptcy, with investors optimistic about debt restructuring that cuts $4.6 billion in debt and reduces annual interest payments by 60%. The company plans to exit bankruptcy in Q3 with $1.3 billion in cash to focus on silicon carbide business. However, stock remains speculative due to cash burn, low revenue, and potential dilution for equity holders. Wall Street had a “Hold” rating on Wolfspeed stock. Despite the rally, caution is advised as the company faces challenges in execution and scale compared to competitors like STMicroelectronics.

Read more at Yahoo Finance: Wolfspeed Is Surging After Filing for Bankruptcy. Is It Too Late to Touch WOLF Stock Here?