Wolfspeed Inc.'s stock experienced a significant intraday surge of 14.45% on Tuesday, continuing its strong upward momentum from the pre-market session.

The rally was fueled by a positive sector catalyst as Huawei Technologies announced it had developed a workaround, called the Tau Scaling Law, to make more advanced chips without the specialty equipment blocked by the U.S. This news sparked a broad rally in semiconductor shares.

Further bolstering investor confidence, research firm Citrini Research published a report listing Wolfspeed as a key recommended target in the AI infrastructure sector. The report emphasized the company's strong position in silicon carbide for high-voltage applications, noting that its AI data center application business grew approximately 30% quarter-over-quarter.

Additionally, recent SEC filings revealed significant institutional accumulation, with Citigroup increasing its holdings by approximately 1.0119 million shares and Slate Path Capital raising its position, sending strong signals of institutional support.