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Wolfspeed Inc
(NYSE:WOLF)
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Rating:43Neutral
Price Target:
$27.00
▼(-4.76% Downside)
Action:Reiterated
Date:08/22/26
The score is held down primarily by weak financial performance (negative gross margin, large operating losses, and persistent cash burn alongside meaningful leverage). Technicals also point to a sustained downtrend with bearish momentum. The earnings call adds some offset via liquidity strength and tangible product/data-center progress, but guidance still indicates continued negative margins near-term, limiting the overall score.
Positive Factors
Data-center growth and design wins
AI/data-center revenue more than doubling year over year and rising sequentially, alongside new supplier design wins, indicates emerging demand beyond automotive. If converted into scaled production, this can diversify Wolfspeed’s end-market mix and improve utilization over the next several quarters.
Negative Factors
Persistent negative margins
Adjusted non-GAAP gross margin of -19.9%, negative EBITDA, and high fixed costs show that current volumes do not yet support the manufacturing footprint. Management expects gross margin to remain negative in Q1 FY2027, so profitability depends on substantial utilization and revenue improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Data-center growth and design wins
AI/data-center revenue more than doubling year over year and rising sequentially, alongside new supplier design wins, indicates emerging demand beyond automotive. If converted into scaled production, this can diversify Wolfspeed’s end-market mix and improve utilization over the next several quarters.
Read all positive factors
Wolfspeed Inc (WOLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.50B
Dividend Yield<0.01%
Average Volume (3M)4.28M
Price to Earnings (P/E)―
Beta (1Y)4.06
Revenue Growth-12.21%
EPS Growth-39.87%
CountryUS
Employees2,371
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)-20.37
Shares Outstanding52,995,396
10 Day Avg. Volume2,810,234
30 Day Avg. Volume4,282,478
Financial Highlights & Ratios
PEG Ratio-5.21
Price to Book (P/B)2.46
Price to Sales (P/S)3.45
P/FCF Ratio-6.03
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$27.50Price Target Upside-3.00% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-8.65
Revenue Forecast (FY)$645.70M
Wolfspeed Inc Business Overview & Revenue Model
Company Description
Wolfspeed, Inc. is an innovator of wide bandgap semiconductors, focused on silicon carbide and gallium nitride (GaN) materials and devices for power and radiofrequency (RF) applications. Its product families include silicon carbide and GaN materia...
How the Company Makes Money
Wolfspeed makes money primarily by designing, manufacturing, and selling wide-bandgap semiconductor products and related materials to customers in automotive, industrial/energy, and RF markets.
Key revenue streams include:
1) Power Devices (Silic...
Wolfspeed Inc Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call conveyed meaningful strategic and technical progress — notable product milestones (Gen5 and 10kV MOSFET), accelerating AI/data center revenue (100%+ YoY and ~20% sequential in Q4), new design wins, and a strong cash balance (~$1.1B). However, near-term financial health remains challenged: adjusted gross margin stayed deeply negative (-19.9%), adjusted EBITDA and operating cash flow were negative, utilization and high fixed costs constrain margin recovery, and substantial high-interest debt remains a drag. Management highlighted a clear path (volume growth, utilization, refinancing) but timing to profitability is uncertain.Positive Updates
Quarterly Revenue in Line with Guidance
Q4 revenue of $150 million, delivered at the midpoint of guidance, demonstrating consistency with the company’s commitments.
Negative Updates
Negative Gross Margin
Adjusted non-GAAP gross margin remained negative at -19.9% for the quarter, though it improved by 70 basis points sequentially; underutilization of factory capacity continues to be a primary drag on margins.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue in Line with Guidance
Q4 revenue of $150 million, delivered at the midpoint of guidance, demonstrating consistency with the company’s commitments.
Read all positive updates
Company Guidance
Management guided Q1 FY2027 revenue of $140–160 million and said non‑GAAP gross margin is expected to remain negative while expanding guidance to include non‑GAAP operating expenses of $62–66 million (Q4 non‑GAAP Opex was $62M). In Q4 they reported $150M revenue (Materials ≈ $43M; Power ≈ $106M, Power +6% sequential; AI data‑center revenue more than doubled YoY and rose ~20% Q3→Q4), adjusted non‑GAAP gross margin of −19.9% (up 70 bps sequential), adjusted EBITDA of −$62M, gross capex of $5M (vs $38M prior quarter), and operating cash flow of −$54M (including a $41M benefit from inventory reduction and ~ $23M from working capital); cash & short‑term investments were ~$1.1B and net debt was ~ $600M (including $46M of 2L conversions that reduced annual interest by ~$1M). Management also indicated gross‑margin breakeven is roughly at an ~$800M annual revenue run‑rate, with fund/asset utilization the primary lever to drive margin expansion.Wolfspeed Inc Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
28
Negative
Cash Flow
15
Very Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 665.10M | 757.60M | 807.20M | 758.50M | 572.10M |
| Gross Profit | -232.10M | -121.60M | 77.40M | 242.90M | 208.10M |
| EBITDA | -316.10M | -1.05B | -145.20M | -71.60M | -105.30M |
| Net Income | 4.40M | -1.61B | -864.20M | -329.90M | -200.90M |
Balance Sheet | |||||
| Total Assets | 3.00B | 6.85B | 7.98B | 6.59B | 3.92B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 1.06B | 2.17B | 2.95B | 1.20B |
| Total Debt | 1.80B | 6.55B | 6.17B | 4.18B | 1.03B |
| Total Liabilities | 2.07B | 7.30B | 7.10B | 4.96B | 1.48B |
| Stockholders Equity | 930.20M | -447.10M | 882.10M | 1.62B | 2.44B |
Cash Flow | |||||
| Free Cash Flow | -380.10M | -1.99B | -3.01B | -1.10B | -795.80M |
| Operating Cash Flow | -203.20M | -711.70M | -725.60M | -142.60M | -154.20M |
| Investing Cash Flow | 667.60M | -268.10M | -1.94B | -1.15B | -391.00M |
| Financing Cash Flow | -355.50M | 400.10M | 1.96B | 2.60B | 615.90M |
Wolfspeed Inc Technical Analysis
Negative
28.35
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 28.35 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.69B | 7.47 | 32.04% | 0.78% | 69.56% | 260.84% | |
65 Neutral | $7.36B | -186.69 | -3.59% | ― | 21.71% | 63.22% | |
59 Neutral | $3.32B | 118.18 | 1.30% | 0.99% | 13.04% | ― | |
56 Neutral | $2.76B | -48.75 | -9.34% | ― | 20.04% | 38.40% | |
56 Neutral | $3.08B | -8.87 | -61.50% | ― | -46.40% | -104.24% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
43 Neutral | $1.50B | -1.39 | -282.74% | <0.01% | -12.21% | -39.87% |
* General Sector Average
WOLF
Wolfspeed Inc
28.35
6.25
28.28%
IPGP
IPG Photonics
78.00
-4.88
-5.89%
SLAB
Silicon Laboratories
220.58
85.82
63.68%
SIMO
Silicon Motion
256.21
172.51
206.09%
AMBA
Ambarella
62.89
-21.10
-25.12%
NVTS
Navitas Semiconductor
11.80
6.19
110.34%
Wolfspeed Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
Wolfspeed Board Sees Renesas Representative Step Down
Neutral
Aug 25, 2026
On August 20, 2026, Wolfspeed disclosed that Renesas Electronics Corporation had notified the company of the impending resignation of its Board representative, Aris Bolisay, effective September 27, 2026. Under Renesas’s existing agreement wi...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Wolfspeed appoints Andy Mattes to board leadership
Positive
Jul 29, 2026
On July 28, 2026, Wolfspeed appointed veteran semiconductor and technology executive Andy W. Mattes to its Board of Directors and named him chair of the Compensation Committee, effective immediately. Mattes, a former CEO of Coherent and Diebold Ni...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Wolfspeed Releases Pro Forma Financials After Reorganization Plan
Neutral
Jun 9, 2026
On June 9, 2026, Wolfspeed disclosed unaudited pro forma consolidated financial information reflecting the impact of its prepackaged plan of reorganization, which became effective on September 29, 2025, its adoption of fresh start accounting on th...
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.