Wolfspeed Shares Plunge Following Extraordinary Rally

Wolfspeed’s stock experienced a dramatic reversal, plummeting nearly 12.6% after an astonishing surge that saw shares gain over 1,700% earlier in the week. The semiconductor manufacturer had recently emerged from bankruptcy proceedings, but the initial market euphoria has now given way to sober reassessment.

The extreme price movements created chaotic trading conditions, with the New York Stock Exchange repeatedly halting transactions. From Friday’s closing price of $1.20, the equity skyrocketed to surpass $34 by Tuesday before the sharp decline commenced.

This exceptional volatility stems from Wolfspeed’s transformation into what market participants call a “low-float” stock. With only 26 million new shares available for trading, the limited supply makes the price disproportionately sensitive to buying and selling pressure. Compounding the... Read more...