Shares of Cree Inc. /zigman2/quotes/204547734/composite CREE +0.07% surged 3.1% in midday trading Monday, after BofA Securities analyst Vivek Arya recommended investors buy, saying the special semiconductor materials maker is "turbocharging EVs" (electric vehicles). Arya initiated coverage of Cree with a buy rating and $140 stock price target, which is well above the Feb. 11 record closing price of $128.28. Arya said he sees Cree as a "critical enabler" in the transformation of the silicon-based, roughly $45 billion power chip market towards next-generation SiC/GaN, or wide band-gap (WBG) materials. Arya noted that power converters based on SiC are lighter and smaller, with 10-times the switching efficiency and three-times the power density of silicon. "Cree's Wolfspeed business is a global leader with 60%+ share in substrates for Silicon Carbide (SiC) -- the next-gen material driving efficient power conversion in battery powered EVs and charging infrastructure," Arya wrote in a note to clients. "Separately, Cree's exposure to Gallium Nitride (GaN) materials/devices also provides strong growth in 5G base station and industrial markets." The stock has soared 30.3% over the past three months, while the PHLX Semiconductor Index /zigman2/quotes/210598361/realtime SOX +0.20% has climbed 16.1% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.08% has gained 6.5%.