Wolfspeed Inc (WOLF) AI Stock Analysis

• Market Cap: $883.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 5,013
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -6.11
• Shares Outstanding: 45,088,676
• 10 Day Avg. Volume: 1,847,419
• 30 Day Avg. Volume: 1,767,493
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.13
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -0.03
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: -6.97
• Enterprise Value/Ebitda: -1.09
• 1Y Price Target: $17.50
• Price Target Upside: -6.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $18.00 ▼(-3.54% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held down primarily by weak financial performance (large losses, high leverage, and significant cash burn) and bearish technical signals (below key moving averages with negative MACD). Earnings-call updates provide some offset via improved liquidity and cost/CapEx discipline, but near-term guidance still points to declining revenue and persistently negative margins, limiting the overall score.

Positive Factors

Technology & manufacturing leadership

A 300mm SiC wafer milestone plus continued 200mm materials leadership indicate sustainable technology differentiation and scale advantages. These capabilities support cost reduction, higher yields and stronger design-win potential across EV, renewables and industrial power over coming quarters.

AI data-center demand traction

Rapid, consistent AI data-center adoption shows product-market fit in a durable, high-growth end market. Diversification into AI power and 800V architecture transitions reduces dependence on cyclical EV demand and creates higher long-term revenue visibility and partner-led design wins.

Strengthened liquidity and balance-sheet actions

The sizable cash balance, tax refund proceeds and targeted debt retirements materially extend runway and reduce immediate refinancing needs. Combined with fresh-start accounting gains and lower planned CapEx, this improves financial flexibility to execute ramp plans over the next several quarters.

Negative Factors

Negative gross margins

Deeply negative gross margins reflect structural cost and underutilization pressures. Persistent negative margins erode the firm's ability to self-fund growth, signal scale inefficiencies in fabs, and imply margins may remain impaired until utilization, pricing or cost structure materially improve.

Poor cash generation and heavy cash burn

Significant negative operating and free cash flow indicate the business currently consumes capital rather than generating it. This structural cash deficit increases reliance on external financing and may constrain investment in capacity, R&D, or customer programs if liquidity tightens.

High leverage and refinancing risk

Elevated absolute debt and a weakened equity cushion raise refinancing and interest-cost risk, especially with a first‑lien rate step-up planned. If operating losses persist, refinancing at higher cost or tighter terms could limit strategic flexibility and strain cash available for growth.

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 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 generates revenue through multiple streams, primarily from the sale of silicon carbide and gallium nitride products. The company sells its semiconductor products to a diverse range of customers in automotive, industrial, and telecommunications sectors. Key revenue streams include direct sales of SiC substrates, power devices, and RF devices, as well as long-term supply agreements with major automotive manufacturers and technology companies. Additionally, Wolfspeed benefits from partnerships and collaborations that enhance its market presence and drive innovation. The increasing demand for energy-efficient solutions and the growth of electric vehicles further contribute to its revenue growth.

Wolfspeed Inc Financial Statement Overview

Summary

Financials appear stressed: TTM profitability is severely negative (gross margin -27%, net margin about -234%), leverage is high with a weakened/negative equity cushion in the latest annual view, and cash generation is poor (TTM operating cash flow -$450M; free cash flow -$1.02B), implying ongoing reliance on external funding/liquidity.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp deterioration in profitability: revenue is slightly down (-1.6%), gross profit is negative (gross margin -27%), and losses are very large (net margin about -234%). While revenue has grown meaningfully over the last few years (2022–2024), the most recent periods show weakening growth and a major margin collapse versus 2023/2024, indicating significant cost pressure and/or underutilization impacting earnings power.

Balance Sheet

Leverage is a key concern. Total debt remains high ($2.0B in TTM, and over $6.5B in the latest annual snapshot) and debt relative to equity is elevated (about 3.1x in TTM, and distorted/negative in the latest annual period due to negative equity). Total assets are sizable, but the equity cushion has weakened materially versus prior years, which reduces financial flexibility and raises refinancing/solvency risk if losses persist.

Cash Flow

Cash generation is weak: TTM operating cash flow is negative (-$450M) and free cash flow is deeply negative (-$1.02B), with free cash flow also declining versus the prior period. The company is consuming cash rather than funding operations internally, implying continued reliance on financing or balance-sheet liquidity to support investment and ongoing losses.

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	164.60M
EBITDA	-1.31B	-1.05B	-145.20M	-2.30M	-10.40M	-93.80M
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	1.29B	1.06B	2.17B	2.95B	1.20B	1.15B
Total Debt	1.97B	6.55B	6.29B	4.30B	1.08B	851.10M
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	-1.02B	-1.99B	-3.01B	-1.10B	-795.80M	-701.90M
Operating Cash Flow	-449.60M	-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	-216.90M	400.10M	1.96B	2.60B	615.90M	504.10M

Wolfspeed Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.66
• MACD: Negative
• RSI: Neutral
• STOCH: 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 18.66 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIMO	73 Outperform	$4.51B	36.33	15.25%	2.22%	-2.26%	9.74%
SLAB	67 Neutral	$6.77B	―	-5.97%	―	47.10%	64.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IPGP	61 Neutral	$5.82B	178.22	1.50%	―	-7.49%	―
AMBA	56 Neutral	$2.84B	-35.19	-13.92%	―	48.08%	51.23%
NVTS	48 Neutral	$1.86B	-12.63	-33.25%	―	-38.06%	-50.14%
WOLF	44 Neutral	$883.29M	-1.19	-349.80%	―	―	―

Wolfspeed Inc Corporate Events

Wolfspeed completes equity issuance and board reshaping post-restructuring

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, representing the final 2% of a 5% equity recovery for legacy equity holders. These issuances followed formal clearance from the Committee on Foreign Investment in the United States (CFIUS) for Renesas’s substantial equity stake and board representation, triggering the exercisability of Renesas’s warrant for 4,943,555 shares and the convertibility of its 2.5% Convertible Second-Lien Senior Secured Notes due 2031; Wolfspeed’s total common shares outstanding rose to about 45.1 million, and Renesas executive Aris Bolisay was appointed to Wolfspeed’s board effective February 2, 2026, cementing Renesas’s role as a strategic creditor-turned-shareholder and reshaping Wolfspeed’s capital structure and governance as it exits its prepackaged restructuring.

The most recent analyst rating on (WOLF) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Updates CFO Employment Agreement and Compensation Terms

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 12, 2025. The updated contract largely maintains previously disclosed terms but adds company-funded access to the Duke Executive Health program, and reiterates that van Issum must repay a $450,000 sign-on bonus if he resigns for any reason or is terminated for cause within one year of September 1, 2025, with “Cause” tightly defined around performance failures, legal violations, dishonesty, damaging felony convictions, or material breaches of confidentiality and noncompete obligations. The agreement confirms van Issum’s at-will employment status while detailing standard post-termination entitlements, including unpaid salary, expenses, unused vacation, remaining health-program payments, and applicable benefit-plan amounts, alongside his eligibility under Wolfspeed’s senior leadership severance plan, underscoring the company’s effort to formalize executive employment terms and retention mechanisms for a key financial leader.

The most recent analyst rating on (WOLF) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Updates CFO Employment Agreement and Compensation Terms

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 12, 2025. The updated contract largely maintains previously disclosed terms but adds company-funded access to the Duke Executive Health program, and reiterates that van Issum must repay a $450,000 sign-on bonus if he resigns for any reason or is terminated for cause within one year of September 1, 2025, with “Cause” tightly defined around performance failures, legal violations, dishonesty, damaging felony convictions, or material breaches of confidentiality and noncompete obligations. The agreement confirms van Issum’s at-will employment status while detailing standard post-termination entitlements, including unpaid salary, expenses, unused vacation, remaining health-program payments, and applicable benefit-plan amounts, alongside his eligibility under Wolfspeed’s senior leadership severance plan, underscoring the company’s effort to formalize executive employment terms and retention mechanisms for a key financial leader.

The most recent analyst rating on (WOLF) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Inc Stockholders Approve Key Governance Proposals

At its Annual Meeting of Stockholders on December 16, 2025, Wolfspeed, Inc. saw stockholders approve three significant proposals. These included the election of seven directors, an advisory vote in favor of executive compensation, and the ratification of PricewaterhouseCoopers LLP as independent auditors for fiscal year 2026. These approvals reflect the company’s efforts to maintain strong governance practices and align operational decisions with stakeholder interests.

The most recent analyst rating on (WOLF) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Amends Executive Employment Agreements for 2025

On December 12, 2025, Wolfspeed, Inc. announced amendments to the employment agreements of its CEO, CFO, and COO, involving significant equity awards. These amendments include restricted stock units and performance stock units, with vesting schedules and performance targets set to incentivize and retain the executives. The awards are part of the company’s 2025 Management Incentive Compensation Plan, aiming to align executive compensation with company performance metrics such as total shareholder return, revenue, and leveraged free cash flow, potentially impacting the company’s leadership stability and strategic execution.

The most recent analyst rating on (WOLF) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Inc Receives $698.6M IRS Tax Refund

On December 1, 2025, Wolfspeed, Inc. announced the receipt of $698.6 million in cash tax refunds from the IRS under the Advanced Manufacturing Investment Credit, significantly enhancing its financial flexibility. This cash infusion supports Wolfspeed’s strategic evolution, allowing it to retire $175 million of outstanding debt and continue its expansion into key growing segments while advancing its 200mm silicon carbide manufacturing capabilities.

The most recent analyst rating on (WOLF) stock is a Sell with a $19.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.