Wolfspeed Inc. was in the spotlight on Wednesday as Mizuho Securities upped its price target on the semiconductor company after it received a funding "lifeline" from the CHIPs Act and several private equity firms.

Shares rose 10% in Wednesday trading.

While the funding in aggregate addresses some of the concerns about Durham, N.C.-based Wolfspeed (including its roughly $5B in net debt), there are still headwinds, including a 10% to 20% decline in silicon carbide pricing; increased supply coming from China; and slowing electric vehicle sales, Mizuho analyst Vijay Rakesh said. Rakesh upped his price target on Wolfspeed to $9.50 from $8 but kept his Underperform rating.