Wolfspeed (WOLF) shares closed meaningfully higher on Wednesday after Citrini Research issued a bullish note in favor of the silicon carbide (SiC) specialist. So far on Thursday, WOLF stock has continued its rapid rise.
The upward momentum drove WOLF’s relative strength index (RSI) into the late 80s, indicating overbought conditions that often trigger a selloff in the near term.
Note that Wolfspeed stock has now more than tripled since the start of this year.
Why Is Citrini Constructive on Wolfspeed Stock
Citrini Research’s bullish thesis centers on Wolfspeed’s strategic pivot toward high-performance artificial intelligence (AI) data center applications.
In a note titled “Crouching Tiger Getting Ready to Reveal a Dragon,” analysts emphasized that while the market has historically viewed WOLF as an electric vehicle (EV) play, its 300mm silicon carbide technology is now a “mechanical necessity” for the next-gen power-hungry AI clusters.
Citrini argues that Wolfspeed is uniquely positioned to capture the burgeoning demand for efficient power conversion in data centers, setting a fresh price target of $85, indicating potential upside of more than 35% from here.
Note that WOLF shares currently sit firmly above their key moving averages (MAs), a technical setup that reinforces a strong uptrend.
What Else Makes WOLF Shares Worth Buying in 2026
Beyond the AI pivot, Citrini is bullish on Wolfspeed shares for the operational “inflection point” at the company’s Mohawk Valley Fab.
As the world’s first and largest 200mm SiC facility, it is finally achieving the scale required to crush competitors on unit economics.
Citrini notes that as yields stabilize above 80%, Wolfspeed will transition from a cash-burning manufacturer to a margin-expansion machine.
Plus, the research points to a supply-side squeeze in high-purity crystalline substrates; because Wolfspeed controls its own wafer supply, it is insulated from the bottlenecks currently hampering smaller European and Chinese rivals.
This vertical integration, coupled with a $2 billion backlog, suggests a sustained multi-year revenue ramp.
A Major Red Flag for Wolfspeed
On the flip side, a major red flag on WOLF stock is the absence of broad Wall Street coverage.
Wolfspeed currently receives coverage from just one Wall Street analyst, who rates it a “Hold” with a price target of $15.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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