Wolfspeed (WOLF) AI Stock Analysis

• Market Cap: $206.98M
• Dividend Yield: N/A
• Average Volume (3M): 18.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.08
• Revenue Growth: -6.14%
• EPS Growth: -63.68%
• Country: US
• Employees: 5,013
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): -0.77
• Shares Outstanding: 156,472,000
• 10 Day Avg. Volume: 7,692,337
• 30 Day Avg. Volume: 18,101,842
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 28.05
• Enterprise Value/Revenue: 7.66
• Enterprise Value/Gross Profit: -47.74
• Enterprise Value/Ebitda: -5.52
• 1Y Price Target: $1.04
• Price Target Upside: -12.61% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 41 Neutral
• Price Target: $1.00 ▼(-15.97% Downside)

Wolfspeed's overall stock score is primarily impacted by its precarious financial performance and valuation challenges. Technical analysis indicates bearish momentum, while recent corporate events, including bankruptcy filing, add to the risk. Despite some positive strategic initiatives, the overall outlook remains concerning.

Positive Factors

Automotive Revenue

Mohawk Valley was better in the quarter, driven by strong Auto revenue.

Earnings

Top-line results were slightly better, driven by strength in Mohawk Valley.

Negative Factors

Competitive Pressure

Pressure on the Materials business is due to mounting competitive threats from state-subsidized materials players in China.

Financial Challenges

Wolfspeed faces significant financial challenges in a sluggish macro environment with financial losses, high leverage, CHIPS Act funding challenges underpinning doubts over going concern.

Financial Performance

Gross margins were actually negative and worse than previously implied, primarily due to underutilization costs at Mohawk Valley.

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 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 Financial Statement Overview

Summary

Wolfspeed is facing significant financial challenges, including declining revenues, high leverage, and negative profitability margins. Cash flow issues further exacerbate the situation, indicating potential liquidity problems.

Income Statement

Wolfspeed's income statement reveals significant challenges. The company has experienced a substantial decline in revenue, with a negative growth rate of 48.6% in the most recent year. Profitability metrics are concerning, with negative gross and net profit margins, indicating the company is struggling to cover its costs and generate profit. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and high expenses relative to revenue.

Balance Sheet

The balance sheet shows a precarious financial position. The debt-to-equity ratio has deteriorated significantly, reaching -14.64, indicating high leverage and potential solvency issues. The negative stockholders' equity suggests financial distress. Return on equity is positive but misleading due to negative equity, and the equity ratio is negative, highlighting a weak capital structure.

Cash Flow

Cash flow analysis indicates severe cash management issues. Operating cash flow and free cash flow are both negative, with declining free cash flow growth. The operating cash flow to net income ratio is negative, suggesting cash flow problems. The free cash flow to net income ratio is positive but reflects the company's inability to generate cash from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	757.60M	757.60M	807.20M	758.50M	572.10M	525.60M
Gross Profit	-121.60M	-121.60M	77.40M	242.90M	249.30M	164.60M
EBITDA	-1.05B	-1.05B	-145.20M	-71.60M	-10.40M	-173.90M
Net Income	-1.61B	-1.61B	-864.20M	-329.90M	-200.90M	-341.30M
Balance Sheet
Total Assets	6.85B	6.85B	7.98B	6.62B	3.92B	3.45B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.06B	2.17B	2.95B	1.20B	1.15B
Total Debt	6.55B	6.55B	6.29B	4.18B	1.08B	851.10M
Total Liabilities	7.30B	7.30B	7.10B	5.00B	1.48B	1.33B
Stockholders Equity	-447.10M	-447.10M	882.10M	1.62B	2.44B	2.12B
Cash Flow
Free Cash Flow	-1.99B	-1.99B	-3.01B	-1.10B	-795.80M	-701.90M
Operating Cash Flow	-711.70M	-711.70M	-725.60M	-142.60M	-154.20M	-125.50M
Investing Cash Flow	-268.10M	-268.10M	-1.94B	-1.15B	-391.00M	-448.60M
Financing Cash Flow	400.10M	400.10M	1.96B	2.60B	615.90M	504.10M

Wolfspeed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.19 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.34, and below the 200-day MA of 4.26, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.94 is Neutral, 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
LASR	62 Neutral	$1.45B	―	-20.63%	―	9.79%	10.28%
Sector *	61 Neutral	$36.05B	6.66	-10.61%	1.86%	8.68%	-8.81%
SKYT	59 Neutral	$581.00M	―	-34.11%	―	-10.53%	36.86%
INDI	55 Neutral	$1.00B	―	-36.20%	―	-7.49%	-64.33%
NVTS	52 Neutral	$1.30B	―	-32.05%	―	-25.65%	-130.95%
CEVA	50 Neutral	$548.58M	―	-3.81%	―	7.71%	-44.25%
WOLF	41 Neutral	$206.98M	―	-739.86%	―	-6.14%	-63.68%

Wolfspeed Corporate Events

Wolfspeed Appoints New CFO Gregor van Issum

On July 7, 2025, Wolfspeed announced the appointment of Gregor van Issum as Chief Financial Officer and Executive Vice President, effective September 1, 2025. Van Issum, with over 20 years of experience in transformational restructuring and strategic financing, will succeed Kevin Speirits, who served as interim CFO. This appointment is part of Wolfspeed’s strategy to enhance its leadership team as it aims for long-term growth and profitability in high-growth markets. Van Issum’s expertise in navigating dynamic business cycles and his background in mergers and acquisitions are expected to support Wolfspeed’s strategic focus on improving profitability and expanding its leadership in silicon carbide technologies.

Wolfspeed Files for Chapter 11 Bankruptcy

On June 30, 2025, Wolfspeed filed for Chapter 11 bankruptcy in the Southern District of Texas to implement a prepackaged reorganization plan. The company will operate as a debtor-in-possession, ensuring business continuity and payment to employees, vendors, and customers. The filing triggers defaults on several debt instruments, but creditor actions are stayed under court jurisdiction.

Wolfspeed Announces Restructuring Support Agreement

On June 22, 2025, Wolfspeed announced a Restructuring Support Agreement with key lenders, including holders of senior secured notes, Renesas Electronics, and convertible debtholders. The agreement aims to reduce Wolfspeed’s debt by approximately 70% and annual cash interest payments by 60%, positioning the company for long-term growth and profitability. The restructuring involves a pre-packaged plan of reorganization under Chapter 11, expected to be completed by the end of the third quarter of 2025. Wolfspeed will continue its operations, serving customers and paying vendors as usual, with existing equity holders receiving a small percentage of new common equity.