Buy this semiconductor stock for a 50% return over the next 12 months

Shares of Wolfspeed Inc (NYSE: WOLF) closed more than 10% up after a Goldman Sachs analyst turned bullish on the Durham-based company, which produces specialty semiconductors that are broadly used in electric vehicles.

Wolfspeed shares could climb to $108

Brian Lee now rates Wolfspeed at “buy” and has a price objective of $108 a share that translates to another 50% upside on top of today’s gain.

He sees a significant potential for growth in the NYSE-listed firm and recommends taking a position in the stock at the current discount. The analyst wrote:

Shares have lost more than 40% over the past three months.

More reasons to buy Wolfspeed stock

Lee is particularly impressed by the execution and increasing production capacity that he believes will help Wolfspeed beat revenue and margin expectations. The analyst added:

In its latest reported quarter, Wolfspeed said its loss was a bit narrower than analysts’ forecast. Revenue, however, came in shy of Street estimates in its fiscal Q3.