Wolfspeed Inc (WOLF) AI Stock Analysis

• Market Cap: $445.35M
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 5,013
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -6.11
• Shares Outstanding: 25,892,447
• 10 Day Avg. Volume: 1,554,224
• 30 Day Avg. Volume: 1,092,560
• 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: 2.41
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: -6.62
• Enterprise Value/Ebitda: -0.73
• 1Y Price Target: $17.50
• Price Target Upside: 1.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -2.25
• Revenue Forecast (FY): $706.00M

• Rating: 45 Neutral
• Price Target: $17.00 ▼(-1.16% Downside)

The score is held down primarily by very weak financial performance (heavy losses, negative equity, and negative cash flows). Technicals also remain bearish with the stock below key moving averages, though near-oversold signals provide limited support. The earnings call adds some offset from improved liquidity and cost/capex discipline, but guidance still points to continued negative margins and a near-term revenue step-down.

Positive Factors

AI data center revenue growth

Sustained, rapid AI data center adoption creates a structural end-market for Wolfspeed's power products. Consistent quarter-over-quarter growth and partner engagements around 400V→800V architectures indicate expanding, higher‑value design wins that can drive durable revenue diversification and higher long‑term demand for SiC solutions.

300mm SiC wafer milestone

Achieving single‑crystal 300mm SiC is a material technology milestone that supports future scale and cost reductions. This positions Wolfspeed to address larger, emerging markets and strengthens its technology moat versus competitors, enabling better economics as fabs and customers migrate to larger wafer formats over time.

Improved liquidity and debt actions

A meaningful cash balance and the $698–700M tax refund materially extend runway and reduce immediate refinancing pressure. Paying down first‑lien debt and reduced net leverage improve near‑term financial flexibility, supporting ordered capex, operational transitions, and execution of the 200mm scale plan over the next several quarters.

Negative Factors

Negative gross margin

Deep negative gross margins reflect structural cost and accounting headwinds: inventory step‑ups, recurring intangible amortization, and reserves. Until utilization improves and one‑time drags abate, the company will struggle to convert revenue growth into sustainable gross profitability and durable operating leverage.

Negative cash generation

Persistent negative adjusted EBITDA and operating cash flow indicate ongoing cash burn. Even with temporary liquidity infusions, continued weak cash generation forces reliance on refunds, debt servicing or capital markets, constraining reinvestment, raising refinancing risk, and limiting ability to fund fab ramps without disciplined execution.

Underutilization & materials demand pressure

Fab economics hinge on high utilization. Significant underutilization charges plus materials demand weakness and competition create persistent fixed‑cost absorption and revenue volatility. If EV and materials demand remain soft, the company may face prolonged margin pressure despite technology milestones and capacity transitions.

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 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 Inc Financial Statement Overview

Summary

Financials are very weak: deeply negative profitability (TTM net margin -259.39% and negative gross margin), high leverage with negative equity, and negative operating/free cash flow with deteriorating FCF growth. Revenue growth is positive (27.7% TTM) but not translating into sustainable margins or cash generation.

Income Statement

Wolfspeed Inc's income statement reveals significant challenges. The company has experienced negative profit margins across all metrics, with a particularly concerning net profit margin of -259.39% in the TTM period. Despite a revenue growth rate of 27.7% in the TTM, the gross profit margin remains negative, indicating cost management issues. The EBIT and EBITDA margins are also deeply negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet shows a precarious financial position with negative stockholders' equity and a high debt-to-equity ratio of -6.77 in the TTM. This indicates high leverage and financial instability. The return on equity is positive, but this is due to the negative equity, which is not a favorable sign. The equity ratio is also negative, reflecting a concerning capital structure.

Cash Flow

Cash flow analysis highlights significant cash flow challenges. The company has negative operating and free cash flows, with a free cash flow growth rate of -23.73% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is positive, but this is due to both metrics being negative, which is not a positive indicator.

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: 17.20
• 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 17.2 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	73 Outperform	$4.36B	32.95	15.25%	2.22%	-2.26%	9.74%
SLAB	67 Neutral	$6.68B	-102.21	-5.97%	―	47.10%	64.29%
IPGP	64 Neutral	$4.21B	166.23	1.22%	―	-7.49%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AMBA	56 Neutral	$2.62B	-32.27	-13.92%	―	48.08%	51.23%
NVTS	48 Neutral	$1.89B	-12.82	-33.25%	―	-38.06%	-50.14%
WOLF	45 Neutral	$445.35M	―	―	―	―	―

Wolfspeed Inc Corporate Events

Wolfspeed completes equity issuance and board reshaping post-restructuring

On January 29–30, 2026, Wolfspeed completed a key step in its court-approved Chapter 11 restructuring by issuing 16,852,372 shares of common stock to Renesas Electronics America and distributing 871,287 shares to pre-petition shareholders, representing the final 2% of a 5% equity recovery for legacy equity holders. These issuances followed formal clearance from the Committee on Foreign Investment in the United States (CFIUS) for Renesas’s substantial equity stake and board representation, triggering the exercisability of Renesas’s warrant for 4,943,555 shares and the convertibility of its 2.5% Convertible Second-Lien Senior Secured Notes due 2031; Wolfspeed’s total common shares outstanding rose to about 45.1 million, and Renesas executive Aris Bolisay was appointed to Wolfspeed’s board effective February 2, 2026, cementing Renesas’s role as a strategic creditor-turned-shareholder and reshaping Wolfspeed’s capital structure and governance as it exits its prepackaged restructuring.

The most recent analyst rating on (WOLF) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Updates CFO Employment Agreement and Compensation Terms

On January 14, 2026, Wolfspeed, Inc. entered into a new employment agreement with its Chief Financial Officer and Executive Vice President, Gregor van Issum, effective January 1, 2026, replacing prior arrangements dated July 6, 2025 and December 12, 2025. The updated contract largely maintains previously disclosed terms but adds company-funded access to the Duke Executive Health program, and reiterates that van Issum must repay a $450,000 sign-on bonus if he resigns for any reason or is terminated for cause within one year of September 1, 2025, with “Cause” tightly defined around performance failures, legal violations, dishonesty, damaging felony convictions, or material breaches of confidentiality and noncompete obligations. The agreement confirms van Issum’s at-will employment status while detailing standard post-termination entitlements, including unpaid salary, expenses, unused vacation, remaining health-program payments, and applicable benefit-plan amounts, alongside his eligibility under Wolfspeed’s senior leadership severance plan, underscoring the company’s effort to formalize executive employment terms and retention mechanisms for a key financial leader.

The most recent analyst rating on (WOLF) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Updates CFO Employment Agreement and Compensation Terms

On January 14, 2026, Wolfspeed, Inc. entered into a new employment agreement with its Chief Financial Officer and Executive Vice President, Gregor van Issum, effective January 1, 2026, replacing prior arrangements dated July 6, 2025 and December 12, 2025. The updated contract largely maintains previously disclosed terms but adds company-funded access to the Duke Executive Health program, and reiterates that van Issum must repay a $450,000 sign-on bonus if he resigns for any reason or is terminated for cause within one year of September 1, 2025, with “Cause” tightly defined around performance failures, legal violations, dishonesty, damaging felony convictions, or material breaches of confidentiality and noncompete obligations. The agreement confirms van Issum’s at-will employment status while detailing standard post-termination entitlements, including unpaid salary, expenses, unused vacation, remaining health-program payments, and applicable benefit-plan amounts, alongside his eligibility under Wolfspeed’s senior leadership severance plan, underscoring the company’s effort to formalize executive employment terms and retention mechanisms for a key financial leader.

The most recent analyst rating on (WOLF) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Inc Stockholders Approve Key Governance Proposals

At its Annual Meeting of Stockholders on December 16, 2025, Wolfspeed, Inc. saw stockholders approve three significant proposals. These included the election of seven directors, an advisory vote in favor of executive compensation, and the ratification of PricewaterhouseCoopers LLP as independent auditors for fiscal year 2026. These approvals reflect the company’s efforts to maintain strong governance practices and align operational decisions with stakeholder interests.

The most recent analyst rating on (WOLF) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Amends Executive Employment Agreements for 2025

On December 12, 2025, Wolfspeed, Inc. announced amendments to the employment agreements of its CEO, CFO, and COO, involving significant equity awards. These amendments include restricted stock units and performance stock units, with vesting schedules and performance targets set to incentivize and retain the executives. The awards are part of the company’s 2025 Management Incentive Compensation Plan, aiming to align executive compensation with company performance metrics such as total shareholder return, revenue, and leveraged free cash flow, potentially impacting the company’s leadership stability and strategic execution.

The most recent analyst rating on (WOLF) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Inc Receives $698.6M IRS Tax Refund

On December 1, 2025, Wolfspeed, Inc. announced the receipt of $698.6 million in cash tax refunds from the IRS under the Advanced Manufacturing Investment Credit, significantly enhancing its financial flexibility. This cash infusion supports Wolfspeed’s strategic evolution, allowing it to retire $175 million of outstanding debt and continue its expansion into key growing segments while advancing its 200mm silicon carbide manufacturing capabilities.

The most recent analyst rating on (WOLF) stock is a Sell with a $19.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

Wolfspeed Inc Implements Fresh Start Accounting Post-Reorganization

Wolfspeed, Inc. disclosed unaudited pro forma consolidated financial information following its prepackaged plan of reorganization, effective September 29, 2025, and adoption of fresh start accounting. The plan, confirmed by the Bankruptcy Court on September 8, 2025, involved significant restructuring, including the issuance of new notes and the cancellation of old equity, impacting various stakeholders and altering the company’s financial landscape.

The most recent analyst rating on (WOLF) stock is a Sell with a $19.00 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.