Wolfspeed Inc.'s stock price soared 16.53% during Tuesday's intraday trading session. The surge follows a period of consecutive declines, with capital rapidly flowing back into the stock, forming a sharp technical rebound.

The movement is supported by the persistent bullish investment thesis around the company's role in AI infrastructure. Research firm Citrini Research has previously designated Wolfspeed as a key pick in the sector, highlighting its irreplaceable position in high-voltage silicon carbide technology. Furthermore, SEC filings indicate institutional accumulation by firms including Citigroup and Slate Path Capital.

The company's business fundamentals show a shift in narrative, with its AI data center application business growing approximately 30% quarter-over-quarter. This reflects a broader industry valuation shift for silicon carbide from electric vehicles toward AI computing power infrastructure. The company, which recently completed a Chapter 11 debt restructuring, remains in a recovery phase, having reported quarterly revenue of $150.2 million alongside a net loss of $119.9 million.