Shares of silicon carbide chipmaker Wolfspeed (NYSE: WOLF) rocketed 26.9% on Monday. The move follows on a big up day last Wednesday as well.
Wolfspeed doesn’t report earnings until May 8, and there wasn’t any especially relevant company-specific news today. However, the beginning of earnings season has spurred some cautious optimism that Wolfspeed’s end markets might be recovering.
With such a sky-high short interest of 41% of shares outstanding and 64% of Wolfspeed’s float as of April 15, it appears as though many short sellers have decided — or have been forced — to close out their positions, leading to a “short squeeze.”