Wolfspeed Inc. (WOLF) saw its stock price surge 8.79% during after-hours trading on Sunday, extending a multi-session rebound for the semiconductor company.

The rally is driven by growing market recognition of the demand outlook for wide-bandgap semiconductors, particularly silicon carbide (SiC) and gallium nitride (GaN) materials. These components are increasingly viewed as critical hardware bottlenecks for the global energy transition and AI data center buildouts, reinforcing a structural demand thesis for Wolfspeed's products.

The stock had previously experienced a steep sell-off due to weakening earnings expectations, but capital has steadily flowed back following the panic-driven decline, contributing to the recent upward momentum.