Why Wolfspeed Stock Is Jumping Today

Wolfspeed (NYSE: WOLF) stock is gaining ground in Monday's trading. The company's share price was up 4.1% as of 2:45 p.m. ET and had been up as much as 12.4% earlier in the daily session. Meanwhile, the S&P 500 index had climbed 0.5%, and the Nasdaq Composite index was up 0.1%.

The broader market is rallying today, and the semiconductor industry is seeing particularly strong bullish momentum thanks to Foxconn's recent quarterly report. Wolfspeed stock is also getting a boost from excitement surrounding the company's participation in this year's annual CES conference in Las Vegas.

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Wolfspeed stock rides chip rally and CES excitement

Foxconn published its fourth-quarter report before the market opened this morning, and investors saw the company's results as a broadly bullish sign for the semiconductor industry. Foxconn, which is a leading technology equipment manufacturer, reported record sales in Q4 and stated that strong demand for artificial intelligence (AI) hardware was a key performance catalyst for the period. The results signaled that demand in the AI infrastructure space remains very robust and helped kick off rallies for big chip players including Nvidia and Micron that also extended to smaller players in other semiconductor fields.

Wolfspeed stock is likely also getting a boost from the upcoming CES conference. The trade show kicks off tonight with a keynote by Nvidia CEO Jensen Huang and will run through Jan. 10. CES is frequently used by tech companies to discuss growth strategies and unveil and demo new product offerings, and investors may be hoping that Wolfspeed has some big news to share.

Will Wolfspeed have big news to share at CES?

Wolfspeed hasn't shared much about its plans at CES or taken any big steps to hype up its participation in the trade show, which means that expecting any big revelations at the event may be misguided. The silicon-carbide specialist is still in the relatively early stages of a substantial restructuring initiative, and it could be too early for the company to take the wraps off any major strategic moves. Wolfspeed is still in the process of finding its next CEO and filling other management roles, and there's a good chance that it will wait until its new leadership team is in place before outlining its next steps to the public.

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Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Nvidia and Wolfspeed. The Motley Fool has a disclosure policy.