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.
He holds a B. 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.