Wolfspeed Soared Today -- Is the Stock a Buy?

Core Viewpoint - Wolfspeed's stock has experienced significant volatility and gains, primarily driven by speculative momentum and broader chip industry news, despite the company's ongoing bankruptcy proceedings [1][4]. Group 1: Stock Performance - Wolfspeed's stock gained 8.4% in a single trading day, with an early peak increase of 22.9% [1]. - Since the announcement of its Chapter 11 bankruptcy at the end of June, the stock price has surged by 273% [2]. Group 2: Market Context - The recent bullish momentum in tech stocks, particularly following Nvidia's licensing approval for its H20 processors in China, has not directly influenced Wolfspeed's investment outlook [4]. - The volatility in Wolfspeed's stock is attributed to speculative trading rather than specific business developments [4][5]. Group 3: Bankruptcy Proceedings - Wolfspeed is currently navigating bankruptcy proceedings, which can lead to significant valuation fluctuations even without relevant news [5]. - The restructuring process may result in the stock being delisted from the New York Stock Exchange, with existing shareholders potentially receiving only 3% to 5% of the new company's value [6].