A little-known chipmaker is getting buzz as the market's newest meme stock after a 79% surge

Core Viewpoint - Wolfspeed's stock experienced a significant surge, rising as much as 46% on Tuesday and extending its rally to 79% over two days following the company's successful exit from Chapter 11 bankruptcy protection and completion of a restructuring process [1][7]. Financial Restructuring - The restructuring led to a reduction in total debt by approximately 70% and a decrease in annual cash interest expense by about 60% [1]. - As part of the restructuring, Wolfspeed cancelled all existing shares and issued new stock, which began trading at $18 per share, reflecting a rise of over 2,500% from the previous closing price of $1.21 [2]. Shareholder Impact - Existing shareholders received only a small fraction of the new common stock, highlighting the risks associated with bankruptcy situations where they are paid back last, if at all [3]. - The dilution of existing shares was noted as significant, yet investors are showing renewed interest in the company due to its less-burdened future and potential as a leading provider of silicon carbide semiconductors [4]. Market Sentiment - Online sentiment around Wolfspeed stock is notably bullish, with messaging volume on Stocktwits being extremely high and mentions on Reddit surging over 1,400% [5]. - The stock is being perceived as a post-bankruptcy comeback story, attracting traders despite the cancellation of old common stock [5]. Future Outlook - If Wolfspeed can demonstrate success following its emergence from bankruptcy, there is potential for sustainable momentum in its stock performance [6].