Wolfspeed Inc. (WOLF) stock is experiencing a remarkable pre-market surge, soaring 17.92% in early trading. This significant upward movement follows an already impressive 26% gain on Monday, indicating strong momentum for the semiconductor company.

The dramatic rise in Wolfspeed's stock price can potentially be attributed to a short squeeze scenario. According to recent analysis by Raymond James, Wolfspeed tops the list of stocks with the largest short-interest ratio in the semiconductor industry, standing at a substantial 41%. This high level of short interest, combined with the stock's recent positive performance, may be forcing short sellers to cover their positions, further driving up the share price.

The semiconductor industry has been experiencing heightened volatility, with various companies facing challenges due to factors such as tariffs and supply chain disruptions. However, Wolfspeed's significant stock movement suggests that investors are showing particular interest in the company, possibly due to its unique position in the market or expectations of strong performance. As the trading session progresses, market participants will be closely watching to see if Wolfspeed can maintain this impressive momentum.