Why Wolfspeed Stock Is Skyrocketing Today
Key Takeaways
From what the evidence shows, S of Wolfspeed (WOLF 19. 37%) are jumping on Wednesday, up 23. 6% as of 3:02 p. The rise comes as the S&P 500 (^GSPC...
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July 23, 2025
03:34 PM
The Motley Fool
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From what the evidence shows, S of Wolfspeed (WOLF 19. 37%) are jumping on Wednesday, up 23. 6% as of 3:02 p
The rise comes as the S&P 500 (^GSPC 0, amid market uncertainty. 78%) and Nasdaq Composite (^IXIC 0 (an important development). 61%) gained 0 (remarkable data) (noteworthy indeed), in today's financial world. 5%, respectively
The embattled chipmaker's stock was flying higher today in part by a U, amid market uncertainty
Trade deal reached with Japan, a country with which Wolfspeed has significant ties
On the other hand, Moreover, Strikes trade deal with Japan President Trump announced yesterday that his administration had reached a "massive" trade deal with Japan that will see tariffs on Japanese goods in the U
Conversely, Reduced to 15%
Critically, auto tariffs were reduced from 25% to 15%, in this volatile climate
Japan will also invest $550 billion in the U
And will open its to U
Goods, including cars, trucks, and agricultural ducts, considering recent developments
Image source: Getty Images
Additionally, Wolfspeed has significant direct with a chip manufacturer in Japan
Market analysis shows lowering of trade barriers can help strengthen this tie
Furthermore, On top of that, increased automotive trade will help the struggling electric vehicle (EV) market, the primary driver of Wolfspeed's sales
It's a critical time for Wolfspeed Late last month, Wolfspeed filed for Chapter 11 bankruptcy
It will continue to operate as it restructures its debt and transforms operations
When it emerges from bankruptcy, Wolfspeed expects to have reduced its debt by 70% and its interest payments by 60%, giving the company some breathing room
On the other hand, For investors with a high risk tolerance, this could be an interesting turnaround play, in light of current trends
For most, however, I would avoid this struggling company's stock, given the current landscape
Additionally, The Author Johnny Rice is a contributing Motley Fool Analyst, given current economic conditions
Prior to The Motley Fool, Johnny contributed to various financial publications
From the University of San Diego and an MFA from A
Nevertheless, Fun fact: Johnny is also an actor and filmmaker
However, TMFJohnnyRice Johnny Rice has no position in any of the stocks mentioned
Market analysis shows Motley Fool recommends Wolfspeed (which is quite significant)
Moreover, The Motley Fool has a disclosure policy.
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