Citrini Research, a notable market research firm, has shifted its focus towards the potential of artificial intelligence (AI) technology, particularly in the short term, despite expressing concerns about its long-term economic implications. Earlier this year, the firm instigated a market panic when it issued a dire forecast suggesting the widespread adoption of AI could lead to significant job losses and potentially trigger a stock market crash.
However, in a newly released report, Citrini has adopted a more optimistic stance regarding analyzing stocks, specifically highlighting chipmaker Wolfspeed as a primary beneficiary of the ongoing AI surge. Describing Wolfspeed as a “crouching tiger,” Citrini emphasizes that the company warrants valuation beyond its theoretical fabrication replacement value, particularly due to its unique position in the market. “They’re the only game in town,” the report states, reflecting confidence in the company’s future.
Following the positive outlook, Wolfspeed’s stock experienced a significant boost, surging by as much as 20% on Wednesday and an additional 13% on Thursday, bringing its year-to-date gains to over 270%.
Citrini’s endorsement of Wolfspeed hinges on its “crouching tiger setup,” indicating that the company is strategically positioning itself ahead of anticipated demand for its silicon carbide (SiC) technology. This material is crucial in semiconductor manufacturing and has become increasingly relevant due to the rising trend in electric vehicle production.
Historically, Wolfspeed faced substantial challenges, including filing for Chapter 11 bankruptcy protection in June 2025 as it sought to restructure its debt after overextending itself in capacity investments that did not initially yield expected results. However, the company successfully completed its financial restructuring three months later, leading to a dramatic resurgence in its stock value.
Citrini believes Wolfspeed is now uniquely positioned to capitalize on the flourishing AI market, suggesting that the same properties making SiC advantageous at data center edges also enable its integration closer to the silicon components themselves. As a prominent supplier of SiC technology, Wolfspeed is poised to satisfy anticipated market demands driven by the AI boom.
The report further emphasizes that while the company’s capital expenditures were seen as value-destructive in 2023, they will likely be viewed as a visionary infrastructure investment in the years to come. As sentiment shifts within the market, Citrini anticipates a significant recalibration of how Wolfspeed’s potential as an essential player in the AI supply chain is perceived.
