Wolfspeed (WOLF) Shares Surge On Potential Short Squeeze Fueled by AI Infrastructure Optimism

Shares of Wolfspeed Inc (NYSE:WOLF) soared 5.07% to $3.72 on Thursday amid renewed investor enthusiasm for AI-related infrastructure spending.

What To Know: The North Carolina-based semiconductor company, which specializes in silicon carbide materials and devices used in electric vehicles and advanced power electronics, has faced intense bearish pressure in recent months.

According to data from Benzinga Pro, approximately 64% of Wolfspeed's float is sold short, making it among the most heavily shorted stocks in the market. That elevated short interest could set the stage for a sharp squeeze as the stock began to rebound in recent sessions.

The rally was further amplified by robust earnings reports from tech giants Meta Platforms Inc and Microsoft Corp, both of which emphasized growing capital expenditures—particularly around AI infrastructure and data centers. Wolfspeed's products are critical in high-efficiency power conversion systems, a key component of next-generation data centers.

As Meta raised its capex outlook and Microsoft highlighted 33% growth in Azure cloud revenue, investors likely recalibrated Wolfspeed's long-term value. The resulting combination of potential short covering and renewed AI infrastructure optimism helped propel Wolfspeed shares sharply higher during Thursday’s session.

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How To Buy WOLF Stock

By now you're likely curious about how to participate in the market for Wolfspeed – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, WOLF has a 52-week high of $30.86 and a 52-week low of $2.06.