Wolfspeed Inc (WOLF)
NYSE:WOLF
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Wolfspeed Inc
(NYSE:WOLF)
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Rating:50Neutral
Price Target:
$20.50
▼(-0.29% Downside)
Action:ReiteratedDate:04/09/26
The score is held down primarily by weak financial performance (large losses, high leverage, and significant cash burn). Offsetting this, technicals show positive near-term momentum, and recent updates point to tighter cost/CapEx discipline and liquidity support, though guidance still calls for lower revenue and continued negative gross margins.
Positive Factors
300mm SiC technology milestone
Achieving a single-crystal 300mm SiC wafer is a durable technology edge: larger wafers enable lower per-unit costs and higher throughput as fabs scale. This milestone supports Wolfspeed's long-term ability to serve high-voltage markets (AI, EV, industrial) and underpins future capacity economics.
Negative Factors
Negative margins and large losses
Deep negative gross and net margins reflect structural underutilization, high fixed costs and amortization headwinds that impair long-term profitability. Until utilization, cost structure and product mix improve, persistent negative margins will hinder sustained operating cash generation and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
300mm SiC technology milestone
Achieving a single-crystal 300mm SiC wafer is a durable technology edge: larger wafers enable lower per-unit costs and higher throughput as fabs scale. This milestone supports Wolfspeed's long-term ability to serve high-voltage markets (AI, EV, industrial) and underpins future capacity economics.
Read all positive factors
Wolfspeed Inc (WOLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$927.02M
Dividend YieldN/A
Average Volume (3M)1.43M
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees5,013
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-6.11
Shares Outstanding45,088,610
10 Day Avg. Volume920,313
30 Day Avg. Volume1,425,766
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-2.33
Price to Sales (P/S)1.38
P/FCF Ratio-0.52
Enterprise Value/Market Cap2.83
Enterprise Value/Revenue3.51
Enterprise Value/Gross Profit-12.87
Enterprise Value/Ebitda-2.00
Forecast
1Y Price Target
$17.50Price Target Upside-14.88% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-10.53
Revenue Forecast (FY)$672.50M
Wolfspeed Inc 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 silic...
How the Company Makes Money
Wolfspeed primarily makes money by selling (1) silicon carbide materials and (2) silicon carbide power devices, with revenue recognized from product shipments to customers. Materials revenue comes from supplying SiC substrates (wafers) and related...
Wolfspeed Inc Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral. The call highlighted important strategic and operational progress — notably strong AI data center revenue growth, a major 300mm materials milestone, substantial liquidity improvements ($1.3B cash, $700M tax refund), early cost and CapEx reductions, and regulatory clearance — but the company still faces pronounced near-term financial and operational challenges including a negative 34% gross margin, negative adjusted EBITDA (-$82M), negative operating cash flow (-$43M), underutilization costs (~$48M), materials demand pressure, and a Q3 revenue decline guide. Management emphasized execution, cost discipline, and long-term opportunity while acknowledging ongoing risks around demand visibility and refinancing timing.Positive Updates
Strong AI Data Center Momentum
AI data center revenue doubled over the last three quarters with 50% quarter-over-quarter growth from Q1 to Q2, driven by traction in AI power, collaborations to support transition from 400V to 800V architectures, and multiple partner engagements.
Negative Updates
Negative Gross Margin and One-Time Accounting Headwinds
Non-GAAP gross margin was negative 34% in Q2. Drivers included a $39 million fresh-start accounting drag (including a $23 million inventory step-up recognized in COGS), a recurring ~$60 million increase in amortization for intangible assets, and $14 million of inventory reserves.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong AI Data Center Momentum
AI data center revenue doubled over the last three quarters with 50% quarter-over-quarter growth from Q1 to Q2, driven by traction in AI power, collaborations to support transition from 400V to 800V architectures, and multiple partner engagements.
Read all positive updates
Company Guidance
The company guided fiscal third-quarter 2026 revenue of $140 million to $160 million (after Q2 revenue of $168 million), said gross margin will remain negative in Q3 but improve quarter‑over‑quarter (Q2 non‑GAAP gross margin was negative 34%, including a $39 million fresh‑start drag — ~$23 million inventory step‑up — plus $14 million inventory reserves, a recurring ~$60 million intangible amortization increase, and ~ $48 million of underutilization; Durham 150mm shutdown improved Q2 gross margin by ~$5 million), and expects non‑GAAP operating expense to be flat to slightly down sequentially (Q2 GAAP OpEx $83 million; non‑GAAP OpEx run‑rate down ~$200 million year‑over‑year). Management reaffirmed tight capital discipline: Q2 CapEx was $31 million (versus ~ $400 million a year ago) and they expect to drive CapEx lower over time, operating cash flow was negative $43 million in Q2, adjusted EBITDA was negative $82 million, cash ended Q2 at $1.3 billion, net debt is ~ $600 million, they collected a $700 million 48D tax refund (used $175 million to pay down first‑lien debt and converted ~1.5 million shares to reduce ~$18 million of debt), total shares outstanding are ~45.1 million, fresh‑start accounting will yield ~ $30 million per quarter lower depreciation & amortization versus pre‑emergence, a $70 million raw‑materials step‑down will be realized over coming quarters, and first‑lien interest steps up around mid‑calendar 2026.Wolfspeed Inc Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
15
Very Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 747.70M | 757.60M | 807.20M | 758.50M | 572.10M | 525.60M |
| Gross Profit | -203.60M | -121.60M | 77.40M | 242.90M | 208.10M | 150.10M |
| EBITDA | -1.31B | -1.05B | -145.20M | -71.60M | -105.30M | -91.20M |
| Net Income | -1.75B | -1.61B | -864.20M | -329.90M | -200.90M | -523.90M |
Balance Sheet | ||||||
| Total Assets | 3.45B | 6.85B | 7.98B | 6.59B | 3.92B | 3.45B |
| Cash, Cash Equivalents and Short-Term Investments | 811.30M | 1.06B | 2.17B | 2.95B | 1.20B | 1.15B |
| Total Debt | 2.07B | 6.55B | 6.17B | 4.18B | 1.03B | 858.60M |
| Total Liabilities | 2.82B | 7.30B | 7.10B | 4.96B | 1.48B | 1.33B |
| Stockholders Equity | 627.40M | -447.10M | 882.10M | 1.62B | 2.44B | 2.12B |
Cash Flow | ||||||
| Free Cash Flow | -993.00M | -1.99B | -3.01B | -1.10B | -795.80M | -696.00M |
| Operating Cash Flow | -421.50M | -711.70M | -725.60M | -142.60M | -154.20M | -125.50M |
| Investing Cash Flow | 1.08B | -268.10M | -1.94B | -1.15B | -391.00M | -448.60M |
| Financing Cash Flow | -154.40M | 400.10M | 1.96B | 2.60B | 615.90M | 504.10M |
Wolfspeed Inc Technical Analysis
Negative
20.56
Price Trends
Market Momentum
7.37
Negative
51.83
Neutral
24.23
Neutral
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 20.56 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 7.37 indicates Negative momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 24.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WOLF.
Wolfspeed Inc Risk Analysis
Wolfspeed Inc disclosed 25 risk factors in its most recent earnings report. Wolfspeed Inc reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The capped call transactions may not prevent dilution of our common stock upon conversion of the 2028 Notes or the 2029 Notes. Q1, 2025
2.
Risks associated with our capital structure Q1, 2025
3.
Risks associated with our strategic transactions Q1, 2025
Wolfspeed Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.14B | 4.07 | 15.21% | 2.22% | -2.26% | 9.74% | |
65 Neutral | $6.93B | -66.51 | -6.05% | ― | 47.10% | 64.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $5.08B | 98.08 | 1.48% | ― | -7.49% | ― | |
59 Neutral | $2.33B | ― | -13.00% | ― | 48.08% | 51.23% | |
58 Neutral | $2.20B | -12.55 | -30.27% | ― | -38.06% | -50.14% | |
50 Neutral | $927.02M | -1.50 | 1017.75% | ― | ― | ― |
* Technology Sector Average
WOLF
Wolfspeed Inc
20.56
-1.54
-6.97%
IPGP
IPG Photonics
120.29
67.41
127.48%
SLAB
Silicon Laboratories
210.36
122.17
138.53%
SIMO
Silicon Motion
121.75
83.13
215.22%
AMBA
Ambarella
53.28
9.66
22.15%
NVTS
Navitas Semiconductor
9.55
7.79
442.61%
Wolfspeed Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Wolfspeed Strengthens Balance Sheet With Convertible Notes Refinancing
Positive
Mar 26, 2026
On March 26, 2026, Wolfspeed closed a series of private placements, issuing $379 million of 3.5% Convertible 1.5 Lien Senior Secured Notes due 2031 and approximately $96.9 million of common stock and pre-funded warrants, both sold at a premium to ...
Business Operations and StrategyPrivate Placements and Financing
Wolfspeed Announces New Convertible Notes and Equity Financing
Positive
Mar 19, 2026
On March 19, 2026, Wolfspeed, Inc. entered into private agreements to issue $379 million of 3.5% Convertible 1.5 Lien Senior Secured Notes due 2031 and approximately $96.9 million of equity through common stock and pre-funded warrants. The deal, e...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsPrivate Placements and FinancingRegulatory Filings and Compliance
Wolfspeed Releases Pro Forma Financials After Major Restructuring
Negative
Mar 9, 2026
On March 9, 2026, Wolfspeed, Inc. released unaudited pro forma consolidated financial information reflecting the impact of its prepackaged plan of reorganization that became effective on September 29, 2025, its adoption of fresh start accounting o...
Business Operations and StrategyExecutive/Board ChangesLegal ProceedingsPrivate Placements and FinancingRegulatory Filings and Compliance
Wolfspeed completes equity issuance and board reshaping post-restructuring
Positive
Jan 30, 2026
On January 29–30, 2026, Wolfspeed completed a key step in its court-approved Chapter 11 restructuring by issuing 16,852,372 shares of common stock to Renesas Electronics America and distributing 871,287 shares to pre-petition shareholders, r...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Wolfspeed Updates CFO Employment Agreement and Compensation Terms
Neutral
Jan 15, 2026
On January 14, 2026, Wolfspeed, Inc. entered into a new employment agreement with its Chief Financial Officer and Executive Vice President, Gregor van Issum, effective January 1, 2026, replacing prior arrangements dated July 6, 2025 and December 1...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Wolfspeed Updates CFO Employment Agreement and Compensation Terms
Neutral
Jan 15, 2026
On January 14, 2026, Wolfspeed, Inc. entered into a new employment agreement with its Chief Financial Officer and Executive Vice President, Gregor van Issum, effective January 1, 2026, replacing prior arrangements dated July 6, 2025 and December 1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.