Wolfspeed Inc (WOLF) AI Stock Analysis

• Market Cap: $514.22M
• Dividend Yield: N/A
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.84
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 5,013
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.55
• Shares Outstanding: 25,892,447
• 10 Day Avg. Volume: 1,281,515
• 30 Day Avg. Volume: 2,260,309
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $30.00
• Price Target Upside: 46.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -2.55
• Revenue Forecast (FY): $850.50M

• Rating: 41 Neutral
• Price Target: $21.00 ▲(2.44% Upside)

Wolfspeed's overall stock score is heavily impacted by its poor financial performance, characterized by declining revenues and significant cash flow issues. Technical analysis provides mixed signals, with high volatility and overbought conditions. The valuation is unattractive due to negative earnings and lack of dividends.

Positive Factors

Market Position

Wolfspeed's leadership in wide bandgap semiconductors positions it advantageously in the growing markets of electric vehicles and renewable energy.

Diverse Revenue Streams

Diverse revenue streams across automotive, industrial, and telecom sectors provide stability and growth potential as demand for energy-efficient solutions rises.

Industry Trends

Structural industry trends favor Wolfspeed's product offerings, supporting long-term growth as sectors shift towards sustainability and electrification.

Negative Factors

Declining Revenues

Significant revenue decline indicates challenges in market demand or competitive pressures, affecting long-term financial health and strategic positioning.

High Leverage

High leverage and negative equity raise concerns about financial stability and the company's ability to manage debt obligations over time.

Cash Flow Issues

Negative cash flows indicate potential liquidity problems, limiting the company's ability to invest in growth opportunities and sustain operations.

Wolfspeed Inc Business Overview & Revenue Model

Company Description

Wolfspeed, Inc. (WOLF) is a leading provider of wide bandgap semiconductors, specializing in silicon carbide (SiC) and gallium nitride (GaN) technologies. The company operates primarily within the semiconductor sector, focusing on power and radio frequency (RF) applications. Wolfspeed's core products include SiC substrates, power devices, RF devices, and modules that cater to various industries such as electric vehicles, renewable energy, telecommunications, and industrial applications.

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

Wolfspeed is facing significant financial challenges, with declining revenues, high leverage, and negative profitability margins. The 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	759.70M	757.60M	807.20M	758.50M	572.10M	525.60M
Gross Profit	-162.50M	-121.60M	77.40M	242.90M	208.10M	164.60M
EBITDA	-1.48B	-1.05B	-145.20M	-2.30M	-10.40M	-93.80M
Net Income	-1.97B	-1.61B	-864.20M	-329.90M	-200.90M	-523.90M
Balance Sheet
Total Assets	6.55B	6.85B	7.98B	6.59B	3.92B	3.45B
Cash, Cash Equivalents and Short-Term Investments	926.00M	1.06B	2.17B	2.95B	1.20B	1.15B
Total Debt	7.32B	6.55B	6.29B	4.30B	1.08B	851.10M
Total Liabilities	7.63B	7.30B	7.10B	4.96B	1.48B	1.33B
Stockholders Equity	-1.08B	-447.10M	882.10M	1.62B	2.44B	2.12B
Cash Flow
Free Cash Flow	-1.52B	-1.99B	-3.01B	-1.10B	-795.80M	-701.90M
Operating Cash Flow	-574.00M	-711.70M	-725.60M	-142.60M	-154.20M	-125.50M
Investing Cash Flow	61.80M	-268.10M	-1.94B	-1.15B	-391.00M	-448.60M
Financing Cash Flow	356.30M	400.10M	1.96B	2.60B	615.90M	504.10M

Wolfspeed Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.50
• 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 20.5 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	72 Outperform	$2.88B	29.15	11.88%	1.93%	-2.26%	9.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IPGP	58 Neutral	$3.31B	130.65	1.22%	―	-7.49%	―
SLAB	56 Neutral	$4.06B	―	-8.00%	―	47.10%	64.29%
AMBA	55 Neutral	$3.88B	―	-13.92%	―	48.08%	51.23%
NVTS	45 Neutral	$1.85B	―	-33.25%	―	-38.06%	-50.14%
WOLF	41 Neutral	$514.22M	―	―	―	―	―

Wolfspeed Inc Corporate Events

Wolfspeed Reports Strong Q1 Amid Chapter 11 Emergence

Wolfspeed, Inc. is a leading company in the semiconductor industry, known for its pioneering work in silicon carbide technologies that power various high-growth sectors. The company recently reported its first-quarter fiscal 2026 results, highlighting strong performance amid its emergence from Chapter 11 bankruptcy. Wolfspeed’s quarterly revenue reached approximately $197 million, with significant contributions from its Mohawk Valley Fab. However, the company faced challenges with a GAAP gross margin of -39% and a GAAP loss per share of $4.12, impacted by reorganization costs. The company ended the quarter with $926 million in cash and equivalents, providing financial flexibility post-restructuring. Looking forward, Wolfspeed anticipates a sequential decline in revenue for the second quarter due to market softness and inventory adjustments by customers. The company remains focused on leveraging its silicon carbide leadership to target high-growth applications such as AI data centers and energy storage, aiming for sustainable growth and long-term value.

Wolfspeed Emerges from Chapter 11 with New Leadership

Wolfspeed has successfully completed its financial restructuring process, emerging from Chapter 11 protection with a significantly reduced debt and extended maturities to 2030. The company has lowered its annual cash interest expense by 60% and maintains ample liquidity to support its operations. With a self-funded business plan and a focus on leveraging its 200mm manufacturing capacity, Wolfspeed is well-positioned to capture growing demand in markets like AI, EVs, and industrial energy. The restructuring process has also led to the appointment of new directors, signaling a new era for the company with improved financial stability and a commitment to innovation.

The most recent analyst rating on (WOLF) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Wolfspeed stock, see the WOLF Stock Forecast page.

Wolfspeed Cancels Shares, Issues New Stock

On September 29, 2025, Wolfspeed cancelled all previously issued and outstanding shares of its common stock. Existing common stockholders received a pro rata share of 1,306,903 new shares at an exchange ratio of 0.008352. If certain regulatory milestones are achieved before the Regulatory Trigger Deadline, stockholders will receive an additional 871,287 shares, totaling 2,178,190 shares at a consolidated exchange ratio of 0.013920. If the deadline occurs without achieving these milestones, no additional shares will be distributed.

The most recent analyst rating on (WOLF) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Wolfspeed stock, see the WOLF Stock Forecast page.

Wolfspeed Plans Corporate Move Amid Bankruptcy

Wolfspeed plans to convert from a North Carolina corporation to a Delaware corporation by September 29, 2025, as part of its strategic restructuring plan. The company is undergoing Chapter 11 bankruptcy proceedings, warning that trading in its securities is highly speculative and may result in significant losses for equity holders.

The most recent analyst rating on (WOLF) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Wolfspeed stock, see the WOLF Stock Forecast page.

Wolfspeed’s Bankruptcy Plan Approved by Court

On September 8, 2025, Wolfspeed, Inc. received court approval for its Plan of Reorganization under Chapter 11, aiming to emerge from bankruptcy in the coming weeks. The plan is expected to reduce the company’s debt by approximately 70%, enhancing its financial flexibility to focus on strategic priorities and maintain its leadership in silicon carbide technologies. Existing equity holders will experience significant changes in their holdings, with a new common equity structure being implemented.

The most recent analyst rating on (WOLF) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Wolfspeed stock, see the WOLF Stock Forecast page.

Wolfspeed, Inc. Faces Challenges Amid Revenue Decline

Wolfspeed, Inc. is a leading company in the semiconductor industry, specializing in silicon carbide technologies that drive innovative applications across various sectors. Known for its advanced semiconductor technology, Wolfspeed is committed to powering a sustainable future through its diverse range of products including power modules and discrete power devices.