Wolfspeed (WOLF) AI Stock Analysis

• Market Cap: $135.89M
• Dividend Yield: N/A
• Average Volume (3M): 37.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.03
• Revenue Growth: -9.62%
• EPS Growth: -30.36%
• Country: US
• Employees: 5,013
• Sector: Technology
• Sector Strength: 81
• Industry: Semiconductors
• EPS (TTM): -0.72
• Shares Outstanding: 155,626,720
• 10 Day Avg. Volume: 19,896,838
• 30 Day Avg. Volume: 37,314,181
• PEG Ratio: -2.48
• Price to Book (P/B): 3.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.72
• Enterprise Value/Market Cap: 77.36
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: -112.20
• Enterprise Value/Ebitda: -6.48
• 1Y Price Target: $4.13
• Price Target Upside: 358.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 45 Neutral
• Price Target: $1.00 ▲(11.11%Upside)

Wolfspeed faces substantial financial challenges, with negative margins and significant debt, which are major concerns for long-term viability. Despite restructuring efforts and leadership changes, immediate financial health remains precarious. The technical analysis indicates bearish momentum, while valuation metrics do not currently favor investment, resulting in a low overall stock score.

Positive Factors

Liquidity

WOLF has access to $2.5bn in funding to support their ongoing restructure, alleviating liquidity concerns.

Restructuring

Management was upbeat about the progress of restructuring actions announced last quarter.

Revenue Growth

EV revenue was up +90% YOY in the first two quarters of FY25, and management sees continued growth moving forward.

Negative Factors

Financial Challenges

Management may consider pursuing in-court options and thus would add 'going concern' to its 10-Q risks, perhaps a sign of looming liquidation.

Investor Confidence

Complex negotiations with lenders, including in-court and out-of-court options, impair equity investors’ confidence in Wolfspeed shares.

Management Changes

The departure of the CEO and now the CFO points to the multiple challenges the company is facing.

Wolfspeed Business Overview & Revenue Model

Company Description

Wolfspeed, Inc. provides silicon carbide and gallium nitride (GaN) materials, power devices, and radio frequency (RF) devices based on wide bandgap semiconductor materials and silicon. The company's silicon carbide and GaN materials comprise silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers. It offers silicon carbide materials for customers to manufacture products for RF, power, and other applications. The company's power devices include silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), power modules, and gate driver boards for customers and distributors to use in applications, such as electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. Its RF devices comprise GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company's products are also used in transportation, fast charging, wireless systems, 5G, motor drives, renewable energy and storage, and aerospace and defense applications; and materials products and RF devices are used in military communications, radar, satellite, and telecommunication applications. It serves customers in North America, Asia, and Europe. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was founded in 1987 and is headquartered in Durham, North Carolina.

How the Company Makes Money

Wolfspeed primarily generates revenue through the sale of its Silicon Carbide and Gallium Nitride semiconductor products. These products are used in power and RF applications, where they are valued for their superior efficiency and performance compared to traditional silicon-based semiconductors. Key revenue streams include the automotive sector, where their products are used in electric vehicles, and the telecommunications industry, where they are used in 5G infrastructure. Additionally, Wolfspeed partners with other technology and industrial companies to develop and supply customized semiconductor solutions, further expanding its revenue opportunities. The company's positioning in the growing markets of electric vehicles and renewable energy systems significantly contributes to its earnings.

Wolfspeed Financial Statement Overview

Summary

Wolfspeed's financial performance is under significant pressure, with declining revenues, substantial losses, and a high debt-to-equity ratio. The negative cash flow trends and shrinking equity base further highlight financial instability.

Income Statement

Wolfspeed's income statement shows significant challenges. The TTM data reveals a negative gross profit margin and persistently negative net income, indicating operational difficulties. Revenue has declined compared to prior periods, and the company continues to report substantial EBIT and EBITDA losses, which raises concerns about profitability and long-term viability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, suggesting heavy reliance on debt financing, which poses financial risk. The equity ratio has dwindled over the periods, indicating a shrinking share of equity in total assets. Nevertheless, the company maintains a substantial asset base, although shareholder equity has seen a notable decline.

Cash Flow

Cash flow statements show a negative trend, with operating cash flow and free cash flow deeply in the red. This trend, combined with ongoing capital expenditures, suggests liquidity issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting revenue into cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
761.30M	807.20M	921.90M	746.20M	525.60M	470.70M
	Gross Profit
-93.70M	77.40M	279.50M	249.30M	164.60M	158.50M
	EBIT
-958.00M	-372.00M	-380.60M	-248.10M	-238.40M	-222.60M
	EBITDA
-725.10M	-145.20M	-71.60M	-131.20M	-173.90M	-73.60M
	Net Income Common Stockholders
-1.11B	-864.20M	-329.90M	-295.10M	-341.30M	-197.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.33B	2.17B	2.95B	1.20B	1.15B	1.24B
	Total Assets
7.57B	7.98B	6.62B	3.92B	3.45B	3.23B
	Total Debt
6.52B	6.29B	4.18B	1.03B	839.10M	798.80M
	Net Debt
5.79B	5.25B	4.19B	582.20M	460.10M	350.00M
	Total Liabilities
6.74B	7.10B	5.00B	1.48B	1.33B	1.14B
	Stockholders Equity
212.70M	882.10M	1.62B	2.44B	2.12B	2.08B
Cash Flow		Free Cash Flow
-2.41B	-3.01B	-1.10B	-804.80M	-701.90M	-263.30M
	Operating Cash Flow
-708.70M	-725.60M	-142.60M	-154.20M	-125.50M	-29.00M
	Investing Cash Flow
-623.30M	-1.94B	-1.15B	-391.00M	-448.60M	-486.90M
	Financing Cash Flow
919.80M	1.96B	2.60B	615.90M	504.10M	464.30M

Wolfspeed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOLF, the sentiment is Negative. The current price of 0.9 is below the 20-day moving average (MA) of 1.35, below the 50-day MA of 2.45, and below the 200-day MA of 6.56, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 31.14 is Neutral, neither overbought nor oversold. The STOCH value of 5.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WOLF.

Wolfspeed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.89B	9.95	-7.22%	4.98%	7.31%	-8.91%
LASR	61 Neutral	$860.25M	―	-24.12%	―	2.66%	-11.35%
NVTS	58 Neutral	$1.34B	―	-26.43%	―	-16.95%	-2.47%
SKYT	56 Neutral	$426.57M	―	-16.06%	―	7.90%	74.69%
CEVA	55 Neutral	$493.63M	―	-2.51%	―	13.09%	46.89%
INDI	54 Neutral	$682.17M	―	-32.43%	―	-7.09%	-53.23%
WOLF	45 Neutral	$135.89M	―	-180.49%	―	-9.62%	-30.36%

Wolfspeed Corporate Events

Wolfspeed Appoints Kevin Speirits as Interim CFO

On May 28, 2025, Wolfspeed, Inc. announced the appointment of Kevin Speirits as Interim Chief Financial Officer, effective May 30, 2025, following the departure of Neill P. Reynolds. Speirits, who has been with the company since 2020, will receive additional compensation under a retention agreement, which includes milestone-based payments and severance benefits. This strategic move is part of Wolfspeed’s efforts to maintain financial stability and continuity during the transition period.

The most recent analyst rating on (WOLF) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Wolfspeed stock, see the WOLF Stock Forecast page.

Wolfspeed Appoints New COO to Boost Operations

On May 22, 2025, Wolfspeed appointed David Emerson, Ph.D., as Executive Vice President and Chief Operating Officer, effective no later than June 30, 2025. Dr. Emerson, who previously held various roles at Wolfspeed, including EVP of LED Products, will oversee operations, supply chain, and quality divisions, focusing on operational excellence and the company’s transition to 200-millimeter silicon carbide production. This strategic appointment aims to enhance Wolfspeed’s market position by reducing customer lead times and improving manufacturing efficiency. The company also announced its financial targets, including achieving positive cash flow by FY2026 and FY2027, as part of its operational restructuring and debt refinancing efforts.

The most recent analyst rating on (WOLF) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Wolfspeed stock, see the WOLF Stock Forecast page.

Wolfspeed Appoints New Board Members Amid Financial Talks

On May 8, 2025, Wolfspeed, Inc. announced the appointment of Mark Jensen and Paul Walsh to its Board of Directors, with both joining the Audit Committee. These appointments bring significant expertise in finance, accounting, and restructuring, crucial for Wolfspeed’s ongoing negotiations with lenders to improve its capital structure. The company also announced that Stacy J. Smith will not seek re-election and will leave the Board before the 2025 Annual Meeting. These changes are expected to strengthen Wolfspeed’s board as it navigates financial challenges and aims for long-term success.

Wolfspeed Enters Confidentiality Agreement, Discloses Financial Info

On April 15, 2025, Wolfspeed, Inc. entered into a confidentiality agreement with a holder of its 1.75% convertible senior notes due 2026 to discuss potential transactions. However, the potential transaction was deemed not actionable, and the company decided not to pursue it further. As part of the agreement, Wolfspeed disclosed certain confidential information to the public. The release also included cautionary notes about the company’s financial projections, which were not prepared for public disclosure and should not be relied upon for investment decisions. The announcement highlights the company’s transparency in handling financial matters and its cautious approach to future projections amidst various economic and geopolitical uncertainties.

Wolfspeed Adopts 2025 Inducement Award Plan

On May 1, 2025, Wolfspeed, Inc. adopted the 2025 Inducement Award Plan, reserving 2,000,000 shares of common stock for equity awards. This plan is designed to attract new talent and facilitate corporate acquisitions or mergers by offering stock options and other equity-based awards, aligning with the New York Stock Exchange’s Inducement Listing Rule.

Wolfspeed CFO Neill Reynolds to Step Down

Wolfspeed announced that Neill P. Reynolds will step down as Executive Vice President and Chief Financial Officer on May 30, 2025, following a mutual agreement to pursue another opportunity. Reynolds will remain with the company until his departure to ensure a smooth transition and assist in ongoing lender negotiations. The company has initiated a search for a new CFO and reaffirmed its fiscal third-quarter guidance for 2025, highlighting its commitment to strengthening its capital structure and balance sheet.

Wolfspeed Appoints Robert Feurle as New CEO

On March 27, 2025, Wolfspeed, Inc. announced the appointment of Robert Feurle as the new Chief Executive Officer, effective May 1, 2025. Feurle, a veteran in the semiconductor industry, is expected to drive operational excellence and enhance profitability at Wolfspeed. His extensive experience in managing large business units and strategic initiatives in the semiconductor sector aligns with Wolfspeed’s strategic vision for long-term value creation. This leadership change is anticipated to bolster Wolfspeed’s market position and financial performance, as the company aims to accelerate its path to positive free cash flow and strengthen its balance sheet.