Wolfspeed Inc (WOLF)
NYSE:WOLF
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Wolfspeed Inc
(NYSE:WOLF)
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Rating:47Neutral
Price Target:
$69.00
▲(169.95% Upside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by very weak financial performance (negative margins and significant cash burn). Technicals are supportive due to strong trend vs. moving averages but are tempered by extremely overbought conditions and high volatility. Earnings-call updates provide some offset via balance-sheet improvement and margin progress, while valuation remains unattractive/unsupported due to ongoing losses and no dividend.
Positive Factors
Product & Technology Leadership
Wolfspeed’s commercialization of a 10 kV SiC MOSFET and new TOLT portfolio establishes a durable technical moat in high-voltage applications. Leading product introductions accelerate customer design‑wins in EV, industrial and power markets where qualification cycles are long, supporting sustained revenue once production scales.
Negative Factors
Negative Gross Margins & Underutilization
Sustained negative gross margins driven by factory underutilization indicate structural scale issues. Until utilization rises (or cost per unit falls), each incremental revenue dollar remains loss‑making, preventing durable margin recovery and making profitability highly sensitive to long, capital‑heavy capacity ramps.
Read all positive and negative factors
Positive Factors
Negative Factors
Product & Technology Leadership
Wolfspeed’s commercialization of a 10 kV SiC MOSFET and new TOLT portfolio establishes a durable technical moat in high-voltage applications. Leading product introductions accelerate customer design‑wins in EV, industrial and power markets where qualification cycles are long, supporting sustained revenue once production scales.
Read all positive factors
Wolfspeed Inc (WOLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.38B
Dividend YieldN/A
Average Volume (3M)8.32M
Price to Earnings (P/E)―
Beta (1Y)3.14
Revenue Growth-6.41%
EPS Growth-106.57%
CountryUS
Employees5,013
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-30.46
Shares Outstanding48,339,080
10 Day Avg. Volume12,703,447
30 Day Avg. Volume8,319,123
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 Cap1.30
Enterprise Value/Revenue6.18
Enterprise Value/Gross Profit-19.90
Enterprise Value/Ebitda-3.56
Forecast
1Y Price Target
$40.00Price Target Upside56.49% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-13.08
Revenue Forecast (FY)$672.20M
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 wide-bandgap semiconductor products to electronics manufacturers and system suppliers, generating revenue largely from (1) silicon carbide materials and (2) silicon carbide power devices. In its materials...
Wolfspeed Inc Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The call conveyed clear strategic and operational progress — including product launches (10kV MOSFET, TOLT), notable sequential AI/data center growth (~30% Q2→Q3), successful refinancing actions (≈$476M proceeds, ~43% reduction of first-lien balance, ~$62M expected annual interest savings) and a strong cash position (~$1.2B). However, results remain constrained by a materially negative gross margin (−20.6%), significant underutilization impact (~$46M), negative adjusted EBITDA (−$62M) and negative operating cash flow (−$84M). Management emphasized that margin expansion depends on improved factory utilization and that 300mm and some AI opportunities are longer-term. Given the balance of meaningful strategic/financial progress against continued operating losses and capital structure work still required, the overall tone is mixed but steady execution is evident.Positive Updates
Revenue in Line with Guidance
Total revenue of $150 million in Q3 FY2026, which was in line with the midpoint of company guidance.
Negative Updates
Negative Gross Margin
Non-GAAP gross margin was negative 20.6% in Q3; management noted a double-digit percentage point improvement versus the prior quarter but gross margin remains materially negative.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue in Line with Guidance
Total revenue of $150 million in Q3 FY2026, which was in line with the midpoint of company guidance.
Read all positive updates
Company Guidance
Wolfspeed guided Q4 FY26 revenue of $140–$160 million, said non‑GAAP gross margin is expected to remain negative and that operating expenses should be roughly flat quarter‑over‑quarter; this follows Q3 results of $150 million revenue (in line with the midpoint), power revenue of ~$100 million (≈90% from Mohawk Valley 200‑mm, ≈10% 150‑mm last‑time buys), materials revenue of ~$50 million (flat sequentially), Q3 non‑GAAP gross margin of -20.6% (double‑digit percentage‑point improvement QoQ) with underutilization impacting results by ~ $46 million, non‑GAAP OpEx of $61 million, adjusted EBITDA of -$62 million, operating cash flow of -$84 million, net CapEx of ~$5 million (gross $38 million offset by $33 million of NY incentives), and cash & short‑term investments of ~ $1.2 billion; management reiterated the longer‑term objective to return to above‑market revenue growth and achieve EBITDA and cash‑flow profitability and highlighted balance‑sheet actions that generated ~$476 million gross proceeds, reduced first‑lien debt by ~43% (≈$97 million principal), are expected to lower annual interest expense by ≈$62 million, and drove an equity increase of more than $400 million, with the first debt maturity in 2030.Wolfspeed Inc Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
28
Negative
Cash Flow
9
Very Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 712.50M | 757.60M | 807.20M | 758.50M | 572.10M | 525.60M |
| Gross Profit | -221.10M | -121.60M | 77.40M | 242.90M | 208.10M | 150.10M |
| EBITDA | -1.24B | -1.05B | -145.20M | -71.60M | -105.30M | -91.20M |
| Net Income | -1.58B | -1.61B | -864.20M | -329.90M | -200.90M | -523.90M |
Balance Sheet | ||||||
| Total Assets | 3.15B | 6.85B | 7.98B | 6.59B | 3.92B | 3.45B |
| Cash, Cash Equivalents and Short-Term Investments | 1.16B | 1.06B | 2.17B | 2.95B | 1.20B | 1.15B |
| Total Debt | 1.72B | 6.55B | 6.17B | 4.18B | 1.03B | 858.60M |
| Total Liabilities | 2.13B | 7.30B | 7.10B | 4.96B | 1.48B | 1.33B |
| Stockholders Equity | 1.02B | -447.10M | 882.10M | 1.62B | 2.44B | 2.12B |
Cash Flow | ||||||
| Free Cash Flow | -750.30M | -1.99B | -3.01B | -1.10B | -795.80M | -696.00M |
| Operating Cash Flow | -363.20M | -711.70M | -725.60M | -142.60M | -154.20M | -125.50M |
| Investing Cash Flow | 699.30M | -268.10M | -1.94B | -1.15B | -391.00M | -448.60M |
| Financing Cash Flow | -282.10M | 400.10M | 1.96B | 2.60B | 615.90M | 504.10M |
Wolfspeed Inc Technical Analysis
Negative
25.56
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 25.56 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $9.27B | 3.54 | 20.24% | 2.22% | 36.05% | 80.83% | |
67 Neutral | $7.17B | -108.41 | -4.66% | ― | 25.14% | 70.00% | |
65 Neutral | $3.84B | -42.07 | -13.00% | ― | 37.15% | 37.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $6.84B | -14.43 | -32.99% | ― | -45.38% | -19.24% | |
57 Neutral | $5.05B | 764.02 | 1.37% | ― | 9.29% | ― | |
47 Neutral | $3.38B | -1.61 | -5208.55% | ― | -6.41% | -106.57% |
* Technology Sector Average
WOLF
Wolfspeed Inc
69.89
47.79
216.24%
IPGP
IPG Photonics
119.00
54.40
84.21%
SLAB
Silicon Laboratories
217.50
96.07
79.12%
SIMO
Silicon Motion
276.14
213.58
341.43%
AMBA
Ambarella
87.55
25.44
40.96%
NVTS
Navitas Semiconductor
29.25
22.75
350.00%
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...
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.