Rumors swirling about Cree (Nasdaq: CREE) – one repeating an often-reported acquisition by IBM and another about a reported joint venture inn South Korea – triggered a Wall Street analyst to issue a note downplaying them on Tuesday.

Andrew Huang at American Technology Research wrote that the IBM (NYSE: IBM) rumor “makes absolutely no sense,” according to media reports. Huang noted that the IBM story “emerges at least once a quarter.”

Huang also downplayed a report in the Korea Times that Cree would form a joint venture with LCD panel maker LG Display to make light-emitting diode “backlights.” Huang said it’s his belief that Cree will remain neutral in providing LEDs for all the major LCD panel manufacturers.

Huang also affirmed his “buy” rating on the stock.

On Aug. 14, Cantor Fitzgerald initiated coverage of Cree as a “buy.”

Cree shares traded down slightly Tuesday afternoon at $22.67, off 11 cents, and rallied to close at $22.84. Shares climbed another 16 cents in after-hours trading.

Wednesday morning, Cree shares shot up another 25 cemts to $23.09.