WOLF – Was at $80. Held the 50 SMA. SMH at Highs. Wolfspeed IncBATS:WOLFkunal00WOLF – SMH At Highs. SOXL At Highs. This One Was $80. Now Testing $53. Catch-Up Play. ───────────────────────────────── The semiconductor index is hitting highs and WOLF is one of the few names in the group that hasn't had its full run back. Stock was at $80 not long ago. Pulled back hard, held the 50 SMA, and is triggering a breakout at $53 right now. I'm in at $53 average with a stop at today's low. This is a riskier name. When it moves it moves fast. That's exactly the point. ───────────────────────────────── WHY WOLF IS IN THE RIGHT PLACE RIGHT NOW ───────────────────────────────── Wolfspeed signed an MOU with GE Aerospace to supply 10 kilovolt silicon carbide MOSFET die and co-develop high-voltage SiC power module formats for industrial, AI, aerospace, and defense markets. That's not an EV play anymore. That's aerospace, defense, and AI data center power all in one partnership with one of the most credible industrial names in the world. They just launched fifth-generation silicon carbide MOSFETs with up to 27% efficiency gains over competing 1,200 volt solutions on their 200 mm SiC platform. And separately, new 3.3 kilovolt SiC power module families are targeting AI data centers, grid-scale renewables, and solid-state transformers — and Wolfspeed is now building a dedicated data center solutions team and opening a Silicon Valley office to work directly with hyperscalers. The AI data center power theme just showed up in this name. Same story driving ENPH, SEDG, and SMR — AI needs power and SiC is a core enabler of efficient power delivery at scale. Short interest sits at 33.4% of the float with 2.9 days to cover. One positive catalyst — GE deal progress, an earnings beat, a hyperscaler design win announcement — and this name squeezes hard. That's the extra fuel behind momentum moves in WOLF. THE CATCH-UP ANGLE ───────────────────────────────── SMH hitting highs. SOXL hitting highs. The semiconductor group is as hot as it's been all year. WOLF was at $80 while all of this was happening and then got hit with a dilution filing that knocked it back into the $40s. That overhang created the pullback. The 50 SMA held. Now it's breaking back out at $53. The broader recovery narrative — having climbed from a 52-week low of $0.39 — continues to attract momentum-oriented traders who view dips as buying opportunities. The dilution fear created the setup. The GE Aerospace deal and Gen5 platform are the fuel for the next leg. ───────────────────────────────── TRADE PLAN ───────────────────────────────── Entry: $53 average on the breakout Stop: Low of day Pattern: Breakout from 50 SMA test and grind Upcoming catalyst: Q3 earnings call, July 1 product portfolio release Short squeeze fuel: 33.4% of float short ───────────────────────────────── THE RISK — AND IT'S SIGNIFICANT ───────────────────────────────── Wolfspeed is burning cash hard. Gross margin is negative at -31%. Net loss is $1.6 billion on trailing revenue of $757 million. This company went through a delisting and restructuring process less than a year ago. It is now trading as Wolfspeed Inc. New. The fundamentals are shaky — this is pure momentum and story. The chart and the sector give you the setup. Respect the stop at today's low and do not oversize this one.