Wolfspeed (WOLF) Falls Sharply After 173% Jump in May

Wolfspeed Inc. (NYSE:WOLF) is one of the 10 Stocks Entering June in the Wrong Direction.

Wolfspeed dropped its share prices by 10.68 percent on Monday to close at $52.95 apiece, as investors resorted to profit-taking to take advantage of last month’s whopping gains, having more than doubled its share price from April levels.

Last month, Wolfspeed Inc. (NYSE:WOLF) saw its share prices climb to an intra-month high of $80.70, marking a growth of 173 percent from only $29.53 in the last trading day of April. It finished May up at $52.95, representing a 100 percent climb from the month prior.

Wolfspeed’s Silicon Carbide 200mm semiconductor wafer. Photo from Wolfspeed

The surge was primarily bolstered by development surrounding the company, including its launch of new power modules to support the needs of the artificial intelligence sector.

It also announced efforts to lure more customers with the launch of a dedicated data center solutions team and regional office in the San Francisco Bay Area to enable closer alignment with leading hyperscalers, ODMs, and the entire ecosystem to build differentiated products and solutions for AI and other data center applications.

“The sheer scale of AI computing demands a fundamental rewrite of data center power architecture,” Wolfspeed Inc. (NYSE:WOLF) CEO Robert Feurle said.

“Moving to higher voltages is no longer optional—it’s a necessity. With our new data center solutions team at the epicenter of tech innovation, Wolfspeed is uniquely positioned to deliver the high-voltage solutions our hyperscaler and ODM partners need to build the efficient data centers of tomorrow,” he noted.

While we acknowledge the risk and potential of WOLF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WOLF and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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