On this Wednesday, shares of Wolfspeed (WOLF) are surging, with a 23.6% increase as of 3:02 p.m. Eastern Time. This rise coincides with the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) experiencing growth of 0.6% and 0.5%, respectively.
Today, the struggling semiconductor company saw its shares soaring, partially due to a U.S.-Japan trade agreement. This nation is particularly relevant to Wolfspeed because of their strong connections.
U.S. strikes trade deal with Japan
Yesterday, President Trump unveiled a significant trade agreement with Japan that includes a lowering of tariffs on Japanese items imported into the U.S. The new rate for these goods is 15%. A notable aspect of this deal involves a reduction in auto tariffs from 25% to 15%. Additionally, Japan has pledged to invest approximately $550 billion in the U.S., and they will broaden their markets to accommodate American goods such as cars, trucks, and agricultural products.
Wolfspeed maintains substantial business dealings with a Japanese chip producer directly. Reducing trade restrictions could solidify this relationship further. Moreover, boosting automotive trade is advantageous for the faltering electric vehicle (EV) sector, which serves as the primary revenue source for Wolfspeed.
It’s a critical time for Wolfspeed
Towards the end of last month, Wolfspeed sought protection under Chapter 11 bankruptcy. However, they plan to keep running while they reorganize their finances and alter their operations. Upon exiting bankruptcy, Wolfspeed anticipates a reduction in debt by about 70% and a decrease in interest payments by roughly 60%, providing the company with some financial relief.
This investment opportunity might appeal to those with a higher risk appetite due to its potential as a turnaround project. However, for the majority, I’d advise steering clear of this troubled company’s shares.
Read More
- Gold Rate Forecast
- 📢 BrownDust2 X BiliBili World 2025 Special Coupon!
- KPop Demon Hunters: Is Your Idol by Saja Boys Inspired by Real K-Pop Bands? Here’s What We Know
- Superman’s Record-Breaking $21M+ Thursday Box Office: Highest of 2025
- Why Tesla Stock Plummeted 21.3% in the First Half of 2025 — and What Comes Next
- Why Are Nicki Minaj and SZA Really Beefing on X? Fans Left Wondering as Rappers Hurl Insults in Sudden Feud
- Dakota Johnson-Anne Hathaway’s Verity Release Date Out: Here’s When Colleen Hoover’s Movie Adaptation Will Hit the Screens
- Genshin Impact 5.8 livestream: start times and where to watch
- Meta CEO Mark Zuckerberg Just Assembled a “Super Intelligence Avengers” Team That Could Totally Change the Game in Artificial Intelligence (AI). Here’s Why That Makes Meta a “Must-Own” AI Stock.
- KPop Demon Hunters Had a Kiss Scene? Makers Reveal Truth Behind Rumi and Jinu’s Love Story
2025-07-23 23:09