WOLF stock rose on a $1.5B DoD silicon carbide deal; sustainability of the rally is uncertain.

But let's move on to another topic. Let's talk about the non-profit engine , Wolf Speed Corporation. I got off to a strong start this morning. It's a completely different story than it was in July 2025 for Wolf Speed.

But, obviously, there are some possibilities here. What are the latest developments?

Yes, Wolf Speed actually designs and manufactures silicon carbide. This is actually necessary to produce chips capable of performing in high voltage environments, as well as being energy efficient. So, this is really what they are known for.

But they are already signing a deal with the Office of Strategic Capital of the U.S. Department of Defense. This will be a long-term deal worth approximately $1.5 billion . This is intended to increase the production of silicon carbide materials to power some of the technologies used by the War Department or the Department of Defense in their operations again.

This somewhat reduces their dependence on China for some of these resources. This deal also includes Wolf Speed issuing some purchase orders to the Ministry of War to complete this transaction.

These purchase orders will amount to 7.5% of diluted equity.

Therefore, it is a very interesting deal. But we are seeing a slight increase in the company's shares. This shows that the government is trying to allocate resources in a way that promotes domestic production to meet its needs, and is trying to reduce its dependence on external factors or countries like China, which monopolize some of the important minerals and materials needed to produce the semiconductors necessary for our defense systems.

So, an interesting development here. We are seeing a good and surprising rise. Let's see if this rise will continue.