NEW YORK, Oct. 11, 2024 Shares of Wolfspeed (NYSE:WOLF) shot up about 10% Friday, with Roth Capital reporting the business is finalizing deals to supply 200mm silicon carbide (SiC) wafers to its top clients. Led by Craig Irwin, Roth Capital analysts reiterated their Buy rating on Wolfspeed stock along with a $25 price target.

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Analysts emphasized Wolfspeed's edge as a top-tier supplier, positioned excellently to support major global semiconductor OEMs as they transition to larger wafer sizes, making Wolfspeed a dependable player during this shift. "Customers are keen to maintain access to large-diameter SiC wafers, which are more economical, so making them hesitant to qualify newer entrants," Irwin said. He also feels these agreements aren't that far off either.

Also analysts also noted that Wolfspeed is discussing conditions for CHIPS Act funding, potentially reaching a deal before the next election. Moreover, worries about the company's leaving its Durham, N.C., plant are dissipating as Roth projects costs well below the expected $1 billion worst-case scenario. It's important to note that the stock has been up a stellar 51% in the past month alone.

This article first appeared on GuruFocus.