Wolfspeed stock surges on Tuesday after bankruptcy exit

Core Viewpoint - Wolfspeed has successfully exited Chapter 11 bankruptcy, significantly reducing its debt and restructuring its operations, which has led to a substantial increase in its stock price. Group 1: Financial Restructuring - Wolfspeed has reduced its total debt by 70% and lowered its annual cash interest expense by about 60% [3] - As part of its restructuring plan, the company canceled its existing stock and issued 1.3 million new shares, resulting in former shareholders retaining less than 1% of their prior stake [2] - The newly issued shares saw a price increase of over 50% following the completion of the restructuring [2] Group 2: Market Performance - The stock price of Wolfspeed jumped as much as 50% on the day following its exit from bankruptcy, after a previous closing increase of 1,686% [1] - The company has gained significant retail interest after filing for bankruptcy protection amid economic uncertainty and changing market conditions [4] - Short interest in the stock has climbed to 28% of the float, indicating a high level of market speculation [5] Group 3: Company Background - Wolfspeed, formerly known as Cree, rebranded in 2021 to focus on silicon carbide semiconductors, which are valued for their energy-efficient technology [5] - The company’s chips are utilized in various sectors, including electric vehicles, artificial intelligence, industrial applications, and energy markets [4]