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Wolfspeed Inc
(NYSE:WOLF)
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Rating:45Neutral
Price Target:
$22.50
▼(-20.63% Downside)
Action:Reiterated
Date:10/15/26
The score is held down primarily by weak financial performance—negative gross margins, large operating losses, and persistent cash burn—alongside a technically weak price trend (below key moving averages). Earnings-call updates add some support via AI/data-center traction and liquidity, but guidance still implies continued losses, and valuation is difficult to justify with a negative P/E and no dividend.
Positive Factors
SiC technology differentiation
Gen 5 SiC and commercially ready 10kV MOSFET products strengthen Wolfspeed’s technology position in demanding power applications. Product differentiation can support customer qualification, design wins, and longer-term adoption across automotive, industrial, energy, and defense markets.
Negative Factors
Severe operating losses
Negative gross profit and very large operating losses indicate that the core business has not yet reached economic scale. Continued losses can consume liquidity, constrain investment choices, and make durable profitability dependent on substantial revenue growth and better factory utilization.
Read all positive and negative factors
Positive Factors
Negative Factors
SiC technology differentiation
Gen 5 SiC and commercially ready 10kV MOSFET products strengthen Wolfspeed’s technology position in demanding power applications. Product differentiation can support customer qualification, design wins, and longer-term adoption across automotive, industrial, energy, and defense markets.
Read all positive factors
Wolfspeed Inc (WOLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.24B
Dividend Yield<0.01%
Average Volume (3M)3.92M
Price to Earnings (P/E)―
Beta (1Y)4.15
Revenue Growth-12.21%
EPS Growth-39.87%
CountryUS
Employees2,371
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)-20.37
Shares Outstanding52,930,570
10 Day Avg. Volume6,420,511
30 Day Avg. Volume3,917,035
Financial Highlights & Ratios
PEG Ratio-4.01
Price to Book (P/B)1.86
Price to Sales (P/S)2.60
P/FCF Ratio-4.55
Enterprise Value/Market Cap2.48
Enterprise Value/Revenue4.64
Enterprise Value/Gross Profit-13.30
Enterprise Value/Ebitda-4.18
Forecast
1Y Price Target
$25.00Price Target Upside-11.82% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-7.52
Revenue Forecast (FY)$642.80M
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:Nov 04, 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 | 329.20M | -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
27.68
Negative
33.34
Negative
30.14
Negative
Market Momentum
-1.00
Positive
42.64
Neutral
10.23
Positive
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 above the 20-day moving average (MA) of 28.26, above the 50-day MA of 27.68, and below the 200-day MA of 30.14, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 10.23 is Positive, 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 | $7.25B | 6.48 | 32.04% | 0.90% | 69.56% | 260.84% | |
65 Neutral | $7.40B | -187.65 | -3.59% | ― | 21.71% | 63.22% | |
58 Neutral | $3.08B | 112.17 | 1.30% | 0.99% | 13.04% | ― | |
56 Neutral | $2.79B | -51.16 | -9.34% | ― | 20.04% | 38.40% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $2.28B | -6.89 | -61.50% | ― | -46.40% | -104.24% | |
45 Neutral | $1.24B | -1.21 | -282.74% | <0.01% | -12.21% | -39.87% |
* General Sector Average
WOLF
Wolfspeed Inc
24.64
-4.95
-16.73%
IPGP
IPG Photonics
74.03
-12.63
-14.57%
SLAB
Silicon Laboratories
221.71
87.23
64.86%
SIMO
Silicon Motion
222.30
128.56
137.13%
AMBA
Ambarella
66.00
-17.45
-20.91%
NVTS
Navitas Semiconductor
9.16
-4.45
-32.70%
Wolfspeed Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Wolfspeed Secures Strategic $1.5 Billion Defense Financing
Neutral
Oct 7, 2026
On October 7, 2026, Wolfspeed announced it had secured a conditional commitment letter from the U.S. Department of War’s Office of Strategic Capital for a senior secured, delayed-draw term loan facility of up to $1.5 billion with a 30-year m...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Wolfspeed Reports Pro Forma Results After Major Restructuring
Neutral
Sep 16, 2026
On September 16, 2026, Wolfspeed disclosed unaudited pro forma consolidated financial information illustrating the effects of its prepackaged plan of reorganization that became effective on September 29, 2025, adoption of fresh start accounting as...
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...
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.