Wolfspeed (WOLF) AI Stock Analysis

• Market Cap: $233.44M
• Dividend Yield: N/A
• Average Volume (3M): 88.62M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.19
• Revenue Growth: -9.62%
• EPS Growth: -30.36%
• Country: US
• Employees: 5,013
• Sector: Technology
• Sector Strength: 92
• Industry: Semiconductors
• EPS (TTM): -0.72
• Shares Outstanding: 155,626,720
• 10 Day Avg. Volume: 28,806,993
• 30 Day Avg. Volume: 88,624,429
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 24.59
• Enterprise Value/Revenue: 7.54
• Enterprise Value/Gross Profit: -61.27
• Enterprise Value/Ebitda: -7.92
• 1Y Price Target: $3.42
• Price Target Upside: 128.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 40 Underperform
• Price Target: $1.50 ▲(0.00% Upside)

Wolfspeed's overall stock score is primarily influenced by its poor financial performance and valuation metrics, reflecting severe operational and financial distress. While the company is making efforts to restructure and improve its position, the ongoing challenges and bankruptcy filing underscore significant risks.

Positive Factors

Financial restructuring

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

Revenue growth

Revenue from EVs grew 92% YoY, with revenue now split 70/30 between automotive and Industrial & Energy, driven by $1.4bn in design ins and $800m in design wins.

Negative Factors

Debt negotiations

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

Leadership changes

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

Market competition

WOLF continues to face stiff competition in the device market from dominant incumbents ON, STM, and IFX.

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 is facing severe financial challenges with declining revenues, negative gross profit margins, and significant losses across all financial statements. The high debt-to-equity ratio and negative cash flows further underline the precarious financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	807.20M	921.90M	746.20M	525.60M	470.70M
Gross Profit	77.40M	279.50M	249.30M	164.60M	158.50M
EBITDA	-145.20M	-71.60M	-131.20M	-173.90M	-73.60M
Net Income	-864.20M	-329.90M	-295.10M	-341.30M	-197.60M
Balance Sheet
Total Assets	7.98B	6.62B	3.92B	3.45B	3.23B
Cash, Cash Equivalents and Short-Term Investments	2.17B	2.95B	1.20B	1.15B	1.24B
Total Debt	6.29B	4.18B	1.03B	839.10M	798.80M
Total Liabilities	7.10B	5.00B	1.48B	1.33B	1.14B
Stockholders Equity	882.10M	1.62B	2.44B	2.12B	2.08B
Cash Flow
Free Cash Flow	-3.01B	-1.10B	-804.80M	-701.90M	-263.30M
Operating Cash Flow	-725.60M	-142.60M	-154.20M	-125.50M	-29.00M
Investing Cash Flow	-1.94B	-1.15B	-391.00M	-448.60M	-486.90M
Financing Cash Flow	1.96B	2.60B	615.90M	504.10M	464.30M

Wolfspeed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.5 is below the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.34, and below the 200-day MA of 5.36, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 14.94 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
LASR	62 Neutral	$1.03B	―	-24.12%	―	2.66%	-11.35%
CEVA	59 Neutral	$517.07M	―	-2.51%	―	13.09%	46.89%
Sector *	57 Neutral	HK$14.02B	9.47	-2.83%	4.86%	9.29%	-48.65%
NVTS	55 Neutral	$1.30B	―	-32.05%	―	-25.65%	-130.95%
SKYT	54 Neutral	$435.70M	―	-16.06%	―	7.90%	74.69%
INDI	49 Neutral	$773.55M	―	-32.43%	―	-7.09%	-53.23%
WOLF	40 Underperform	$233.44M	―	-180.49%	―	-9.62%	-30.36%

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.

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 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.

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 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.

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 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.