What happened: Wolfspeed stock (WOLF) stock jumped more than 20% in premarket trading on Wednesday.

What’s behind the move: Shares of the chipmaker soared after thematic research firm Citrini recommended the stock, highlighting it as “a crouching tiger getting ready to reveal a dragon that deserves to not just be priced based on what their fab’s replacement value theoretically is, but reflect the fact that it’s not going to be replaced.”

The stock is on pace to extend gains for a seventh consecutive session.

What else you need to know: Shares of the maker of silicon carbide semiconductors, prized for energy efficiency, have been on a tear this year, surging more than 180%.

Wolfspeed has been around for years, but it drew heightened retail interest last year after filing for bankruptcy protection amid economic uncertainty, shifting trade policies, and softer demand for its chips used in electric vehicles, artificial intelligence, industrial, and energy markets.

The company exited Chapter 11 bankruptcy last September, reducing the debt on its balance sheet by approximately 70%.

Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.

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