Why Is Wolfspeed Stock Jumping Today?

Shares of Wolfspeed (NYSE: WOLF) are jumping on Tuesday, up 5.8% as of 3:06 p.m. ET. The spike comes as the S 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.4% and 0.6%, respectively.

After a brief correction yesterday, the chipmaker's stock is moving up once again amid a weeklong 115% surge, spurred by news that the company is close to exiting Chapter 11 bankruptcy.

Last week, a bankruptcy court said that it was satisfied with Wolfspeed's plan to eliminate $4.6 billion in debt, paving the way for the embattled chipmaker to exit bankruptcy. The plan will result in a 70% reduction in the company's total debt and a 60% decrease in annual interest expenses. Wolfspeed officially filed for Chapter 11 bankruptcy on June 30 due to mounting debt that made it impossible to operate normally.

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Source Fool.com