Wolfspeed Inc (WOLF) AI Stock Analysis

• Market Cap: $806.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• 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: 45,088,676
• 10 Day Avg. Volume: 1,739,498
• 30 Day Avg. Volume: 1,905,128
• 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 Cap: 2.88
• Enterprise Value/Revenue: 3.11
• Enterprise Value/Gross Profit: -11.42
• Enterprise Value/Ebitda: -1.78
• 1Y Price Target: $17.50
• Price Target Upside: -2.18% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -10.53
• Revenue Forecast (FY): $672.50M

• Rating: 46 Neutral
• Price Target: $18.00 ▲(0.61% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily constrained by very weak financial performance (large losses, negative margins, high leverage, and deep negative free cash flow). Technicals are mixed but not supportive enough to offset the fundamental pressure, and valuation offers limited support given the negative P/E and no dividend. The earnings call adds some stabilization credit from liquidity, debt reduction, and major CapEx/OpEx cuts, but guidance still points to continued near-term operating losses.

Positive Factors

300mm SiC wafer technology milestone

Achieving a single-crystal 300mm SiC wafer is a durable technology moat: larger wafers enable lower unit costs, higher throughput and better integration with mainstream semiconductor supply chains. This milestone supports long-term device scale, potential margin improvements, and barriers for competitors as Wolfspeed scales materials production.

AI data center revenue traction

Rapid, recurring growth in AI data center revenue signals durable diversification beyond cyclical EV demand. Strong partner engagements and transitions to higher-voltage architectures (400V→800V) indicate structural design wins and sticky customer relationships that can drive multi-quarter order streams and justify targeted capacity investments.

Restructuring improved liquidity and capital structure

Post-restructuring liquidity and targeted debt paydown provide a meaningful near-term cushion. The cash buffer plus fresh-start accounting reductions in D&A and a realized raw-material step-down reduce immediate solvency pressure, enabling management to focus on execution, cost reductions, and measured capacity ramps over coming quarters.

Negative Factors

Negative gross margins

Sustained negative gross margins reflect structural underutilization, inventory step-ups and recurring intangible amortization. Without meaningful utilization increases or cost-to-serve reductions, negative gross margins will continue to consume cash and prevent operating leverage from translating revenue growth into durable profitability over the medium term.

Weak cash generation and deep negative FCF

Persistent negative operating and free cash flow indicate the business currently requires external financing to fund operations and capex. This structural cash burn limits strategic flexibility, forces prioritization of liquidity uses, and raises the risk that future growth or margin improvements will be constrained by capital availability.

High leverage and refinancing risk

A looming interest step-up and ongoing refinancing needs create durable cost-of-capital risk. Even after restructuring, significant debt service and active refinancing increase earnings sensitivity to cash flow volatility and raise the probability that management must allocate cash to financing rather than to scaling production or margin-improvement initiatives.

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 primarily makes money by selling (1) silicon carbide materials and (2) silicon carbide power devices, with revenue recognized from product shipments to customers. Materials revenue comes from supplying SiC substrates (wafers) and related materials (including epitaxy) to semiconductor manufacturers and device makers that use SiC as the base material for high-efficiency, high-voltage power electronics. Device revenue comes from selling SiC power semiconductors—such as MOSFETs, diodes, and power modules—integrated into customer systems that require efficient power conversion and switching (notably EV traction inverters, onboard chargers, DC fast chargers, industrial power supplies, and renewable-energy inverters). The company’s earnings are influenced by long-term supply arrangements and customer design wins that can create multi-year production demand once a device is qualified into an automotive or industrial platform; capacity expansions and yield/cost improvements in wafer and device manufacturing also materially affect revenue growth and gross margin. Partnerships and customer agreements that secure wafer supply or device demand can support utilization of Wolfspeed’s manufacturing footprint; however, specific contract terms and partner identities are not provided here and are therefore null.

Wolfspeed Inc Financial Statement Overview

Summary

Financial statements indicate severe stress: negative gross margin (about -27%) and very large losses (net margin about -234%), elevated leverage with weakened/negative equity in the latest annual view, and sustained cash burn (TTM operating cash flow -$450M; free cash flow -$1.02B). These factors point to limited financial flexibility and higher solvency/refinancing risk if losses persist.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp deterioration in profitability: revenue is slightly down (-1.6%), gross profit is negative (gross margin -27%), and losses are very large (net margin about -234%). While revenue has grown meaningfully over the last few years (2022–2024), the most recent periods show weakening growth and a major margin collapse versus 2023/2024, indicating significant cost pressure and/or underutilization impacting earnings power.

Balance Sheet

Leverage is a key concern. Total debt remains high ($2.0B in TTM, and over $6.5B in the latest annual snapshot) and debt relative to equity is elevated (about 3.1x in TTM, and distorted/negative in the latest annual period due to negative equity). Total assets are sizable, but the equity cushion has weakened materially versus prior years, which reduces financial flexibility and raises refinancing/solvency risk if losses persist.

Cash Flow

Cash generation is weak: TTM operating cash flow is negative (-$450M) and free cash flow is deeply negative (-$1.02B), with free cash flow also declining versus the prior period. The company is consuming cash rather than funding operations internally, implying continued reliance on financing or balance-sheet liquidity to support investment and ongoing losses.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	747.70M	757.60M	807.20M	758.50M	572.10M	525.60M
Gross Profit	-203.60M	-121.60M	77.40M	242.90M	208.10M	150.10M
EBITDA	-1.31B	-1.05B	-145.20M	-71.60M	-105.30M	-91.20M
Net Income	-1.75B	-1.61B	-864.20M	-329.90M	-200.90M	-523.90M
Balance Sheet
Total Assets	3.45B	6.85B	7.98B	6.59B	3.92B	3.45B
Cash, Cash Equivalents and Short-Term Investments	811.30M	1.06B	2.17B	2.95B	1.20B	1.15B
Total Debt	2.07B	6.55B	6.17B	4.18B	1.03B	858.60M
Total Liabilities	2.82B	7.30B	7.10B	4.96B	1.48B	1.33B
Stockholders Equity	627.40M	-447.10M	882.10M	1.62B	2.44B	2.12B
Cash Flow
Free Cash Flow	-993.00M	-1.99B	-3.01B	-1.10B	-795.80M	-696.00M
Operating Cash Flow	-421.50M	-711.70M	-725.60M	-142.60M	-154.20M	-125.50M
Investing Cash Flow	1.08B	-268.10M	-1.94B	-1.15B	-391.00M	-448.60M
Financing Cash Flow	-154.40M	400.10M	1.96B	2.60B	615.90M	504.10M

Wolfspeed Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.89
• 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 17.89 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	$4.29B	4.07	15.21%	2.22%	-2.26%	9.74%
SLAB	65 Neutral	$6.80B	-66.51	-6.05%	―	47.10%	64.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IPGP	60 Neutral	$4.87B	98.08	1.48%	―	-7.49%	―
NVTS	58 Neutral	$2.27B	-12.55	-30.27%	―	-38.06%	-50.14%
AMBA	56 Neutral	$2.27B	―	-13.00%	―	48.08%	51.23%
WOLF	46 Neutral	$806.64M	-1.50	1017.75%	―	―	―

Wolfspeed Inc Corporate Events

Wolfspeed Releases Pro Forma Financials After Major Restructuring

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 on that date, and the receipt of all required regulatory approvals on January 29, 2026. The pro forma statements illustrate how the restructuring, including new senior secured notes, second-lien convertible and takeback notes, and substantial equity issuances to creditors such as Renesas, would have affected results beginning July 1, 2024, highlighting that post‑reorganization financials are not comparable with prior periods and that key instruments have shifted from liability to equity classification, materially altering Wolfspeed’s capital structure.

The company’s plan of reorganization, confirmed by the bankruptcy court on September 8, 2025 and effective September 29, 2025, provided senior secured noteholders with new notes and cash redemptions, while convertible noteholders received rights to new 2.5% second‑lien convertible notes, new PIK toggle notes, and new common stock. Renesas received new second‑lien convertible notes, warrants, and more than 16.8 million new common shares once regulatory approvals were secured, triggering the settlement of a large forward equity contract and reclassification of related instruments to equity, which together signal a comprehensive reset of creditor claims and governance rights under the reorganized capital structure.

The most recent analyst rating on (WOLF) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Wolfspeed Inc stock, see the WOLF Stock Forecast page.

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.