Wolfspeed (WOLF) AI Stock Analysis

• Market Cap: $606.94M
• Dividend Yield: N/A
• Average Volume (3M): 28.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.68
• Revenue Growth: -9.62%
• EPS Growth: -30.36%
• Country: US
• Employees: 5,013
• Sector: Technology
• Sector Strength: 77
• Industry: Semiconductors
• EPS (TTM): -0.72
• Shares Outstanding: 155,626,720
• 10 Day Avg. Volume: 30,717,511
• 30 Day Avg. Volume: 28,794,845
• PEG Ratio: 0.02
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.13
• Price Target Upside: 18.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Wolfspeed's overall stock score reflects substantial financial difficulties, with negative margins and cash flows posing significant challenges. Despite some positive indicators in technical analysis and corporate leadership changes, the company's high debt and unprofitability weigh heavily on its valuation. While strategic restructuring efforts and new leadership provide a glimmer of hope, the path to financial stability remains uncertain and fraught with risk.

Positive Factors

Financial Performance

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

Revenue Growth

EV revenue was up +90% YOY in the first two quarters of FY25, and management sees continued growth moving forward.

Negative Factors

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.

Investor Confidence

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

Management Stability

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

Wolfspeed Business Overview & Revenue Model

Company Description

Wolfspeed, Inc. (WOLF) is a leader in the semiconductor industry, specializing in the development and production of wide bandgap semiconductors, particularly silicon carbide (SiC) and gallium nitride (GaN) materials and devices. These advanced materials are crucial for enhancing the efficiency and performance of power and radio frequency (RF) applications across various sectors, including automotive, telecommunications, industrial, and renewable energy. Wolfspeed's core products include power devices, RF devices, and materials that enable next-generation systems for electric vehicles, 5G networks, and other cutting-edge technologies.

How the Company Makes Money

Wolfspeed generates revenue primarily through the sale of its semiconductor products, which include silicon carbide (SiC) and gallium nitride (GaN) materials, power devices, and RF devices. These products are sold to a diverse range of industries, including automotive manufacturers for electric vehicles, telecommunications companies for 5G infrastructure, and industrial clients for high-efficiency power management solutions. The company capitalizes on the growing demand for energy-efficient and high-performance semiconductor materials, driven by trends such as electrification, renewable energy adoption, and the expansion of wireless communication networks. Strategic partnerships and long-term supply agreements with key players in these sectors also contribute significantly to Wolfspeed's revenue streams, ensuring a stable and growing customer base.

Wolfspeed Financial Statement Overview

Summary

Wolfspeed is navigating a tough financial landscape characterized by high leverage, significant losses, and cash flow constraints. While gross profits indicate some operational effectiveness, the company faces challenges in achieving profitability and managing its debt levels. Sustained investment and strategic adjustments will be crucial for future financial stability and growth.

Income Statement

Wolfspeed's TTM data shows a challenging financial position with negative net income and EBIT, reflecting ongoing profitability issues. The gross profit margin stands at 12.22%, indicating some level of product profitability, but the net profit margin is deeply negative at -146.13%, highlighting significant losses. Revenue growth is subdued, with a marginal increase from the previous year, suggesting limited top-line expansion.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 17.26, indicating significant leverage and potential financial risk. Return on Equity is negative at -319.47%, due to large losses and low equity. The equity ratio is 4.81%, reflecting a capital structure heavily reliant on debt, which could pose risks in volatile market conditions.

Cash Flow

Wolfspeed shows negative free cash flow, with a deteriorating free cash flow growth rate, driven by substantial capital expenditures. The operating cash flow to net income ratio suggests that cash flow challenges are in line with the company's earnings difficulties. The financials indicate cash flow constraints amid high investment levels.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
776.60M	807.20M	921.90M	746.20M	525.60M	470.70M
	Gross Profit
-49.00M	77.40M	279.50M	249.30M	164.60M	158.50M
	EBIT
-758.60M	-372.00M	-380.60M	-248.10M	-238.40M	-222.60M
	EBITDA
-481.90M	-145.20M	-71.60M	-131.20M	-173.90M	-73.60M
	Net Income Common Stockholders
-978.20M	-864.20M	-329.90M	-295.10M	-341.30M	-197.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40B	2.17B	2.95B	1.20B	1.15B	1.24B
	Total Assets
7.74B	7.98B	6.62B	3.92B	3.45B	3.23B
	Total Debt
4.47B	6.29B	4.18B	1.03B	839.10M	798.80M
	Net Debt
3.86B	5.25B	4.19B	582.20M	460.10M	350.00M
	Total Liabilities
7.37B	7.10B	5.00B	1.48B	1.33B	1.14B
	Stockholders Equity
372.60M	882.10M	1.62B	2.44B	2.12B	2.08B
Cash Flow		Free Cash Flow
-2.77B	-3.01B	-1.10B	-804.80M	-701.90M	-263.30M
	Operating Cash Flow
-702.80M	-725.60M	-142.60M	-154.20M	-125.50M	-29.00M
	Investing Cash Flow
-916.70M	-1.94B	-1.15B	-391.00M	-448.60M	-486.90M
	Financing Cash Flow
1.33B	1.96B	2.60B	615.90M	504.10M	464.30M

Wolfspeed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 3.49 is below the 20-day moving average (MA) of 3.64, below the 50-day MA of 3.85, and below the 200-day MA of 7.83, indicating a bearish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 47.82 is Neutral, neither overbought nor oversold. The STOCH value of 39.20 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
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%
SKYT	55 Neutral	$427.05M	―	-16.06%	―	7.90%	74.69%
CEVA	54 Neutral	$499.85M	―	-2.51%	―	13.09%	46.89%
LASR	53 Neutral	$626.40M	―	-24.12%	―	2.66%	-11.35%
NVTS	51 Neutral	$398.96M	―	-26.43%	―	-16.95%	-2.47%
INDI	50 Neutral	$573.79M	―	-32.43%	―	-7.09%	-53.23%
WOLF	44 Neutral	$606.94M	―	-180.49%	―	-9.62%	-30.36%

Wolfspeed Corporate Events

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.

Spark’s Take on WOLF Stock

According to Spark, TipRanks’ AI Analyst, WOLF is a Neutral.

Wolfspeed’s overall stock score reflects a company in transition, facing significant financial and operational challenges. The financial performance is heavily impacted by high leverage and losses, while the technical analysis provides some hope of recovery. Valuation concerns arise from negative earnings, and the earnings call highlights a mixed outlook with some strategic positives. The appointment of a new CEO could potentially lead to future improvements.

To see Spark’s full report on WOLF stock, click here.

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.

Spark’s Take on WOLF Stock

According to Spark, TipRanks’ AI Analyst, WOLF is a Neutral.

Wolfspeed faces significant financial challenges, with high leverage and ongoing losses weighing heavily on its stock score. Technical analysis shows a bearish trend, and valuation is concerning given the negative P/E ratio. The earnings call highlighted both potential improvements and ongoing challenges, while the new CEO’s appointment is a positive development. Despite strategic initiatives, the company’s financial and market conditions present substantial risks.

To see Spark’s full report on WOLF stock, click here.

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.

Spark’s Take on WOLF Stock

According to Spark, TipRanks’ AI Analyst, WOLF is a Neutral.

Wolfspeed faces significant financial challenges, with high leverage and ongoing losses weighing heavily on its stock score. Technical analysis shows a bearish trend, and valuation is concerning given the negative P/E ratio. The earnings call highlighted both potential improvements and ongoing challenges, while the new CEO’s appointment is a positive development. Despite strategic initiatives, the company’s financial and market conditions present substantial risks.

To see Spark’s full report on WOLF stock, click here.

Wolfspeed CFO Neill Reynolds to Step Down

Wolfspeed announced that Neill P. Reynolds will step down as Executive Vice President and Chief Financial Officer on May 30, 2025, following a mutual agreement to pursue another opportunity. Reynolds will remain with the company until his departure to ensure a smooth transition and assist in ongoing lender negotiations. The company has initiated a search for a new CFO and reaffirmed its fiscal third-quarter guidance for 2025, highlighting its commitment to strengthening its capital structure and balance sheet.

Spark’s Take on WOLF Stock

According to Spark, TipRanks’ AI Analyst, WOLF is a Neutral.

Wolfspeed faces significant financial challenges, including high leverage and negative cash flow, which weigh heavily on its stock score. While the earnings call highlighted some strategic initiatives and potential funding support, the company’s valuation remains unattractive. Technical indicators suggest bearish trends, adding to the cautious outlook.

To see Spark’s full report on WOLF stock, click here.

Wolfspeed Appoints Robert Feurle as New CEO

On March 27, 2025, Wolfspeed, Inc. announced the appointment of Robert Feurle as the new Chief Executive Officer, effective May 1, 2025. Feurle, a veteran in the semiconductor industry, is expected to drive operational excellence and enhance profitability at Wolfspeed. His extensive experience in managing large business units and strategic initiatives in the semiconductor sector aligns with Wolfspeed’s strategic vision for long-term value creation. This leadership change is anticipated to bolster Wolfspeed’s market position and financial performance, as the company aims to accelerate its path to positive free cash flow and strengthen its balance sheet.