WOLFWolfspeed is operating in a high-growth sector (SiC and GaN semiconductors) with strong thematic potential. However, recent financial performance shows significant losses and increasing debt, coupled with negative free cash flow. Technical indicators are mixed, with some suggesting potential short-term buying opportunities but an overall downtrend persists.
Wolfspeed is a key player in the growing silicon carbide (SiC) and gallium nitride (GaN) semiconductor markets, which are essential for electric vehicles (EVs), renewable energy infrastructure, and advanced telecommunications. These are significant secular growth trends.
Wolfspeed exhibits significant financial challenges. While revenue has grown, the company is experiencing substantial net losses, a sharp increase in debt, and negative free cash flow, further compounded by recent Chapter 11 filings. Profitability remains a major concern.
Wolfspeed's stock is in a significant downtrend. While recent price action shows some consolidation and occasional bounces, key moving averages are unfavorable, and oscillators suggest mixed signals with a bias towards selling pressure.
| Factor | Score |
|---|---|
| Electric Vehicles (EVs) | 95 |
| Renewable Energy & Charging Infrastructure | 90 |
| 5G & Telecommunications | 80 |
| Semiconductor Industry Trends | 85 |
| Company Restructuring & Chapter 11 | 50 |
| Factor | Score |
|---|---|
| Valuation | 30 |
| Profitability | 5 |
| Growth | 50 |
| Balance Sheet Health | 10 |
| Cash Flow | 5 |
| Factor | Score |
|---|---|
| Trend Analysis | 20 |
| Momentum | 50 |
| Volume Confirmation | 50 |
| Support & Resistance | 40 |
| Short-Term Oscillators | 50 |
Attractive Valuation Metrics
The stock exhibits a trailing P/S ratio of 0.3 and a forward P/S ratio of 1.3 (based on the latest quarterly data), suggesting potential undervaluation compared to its revenue generation capabilities.
Robust Cash Position
The company holds substantial cash and cash equivalents ($1.05B as of 2024 Q2), which provides a buffer against short-term financial obligations and supports ongoing operations and potential investments.
Significant Net Losses and Negative Margins
The company has consistently reported substantial net losses, with a TTM net income of -$939.9M and a net margin of -107.1% in the latest fiscal year, indicating severe profitability challenges.
High Enterprise Value relative to Revenue
The enterprise value is significantly higher than its market capitalization (e.g., $5.38B vs $0.25B in 2024 Q2), driven by substantial debt, which may signal an overvalued situation given current revenues.
August 2025
19
Next Earnings Date
H: $-0.60
A: $-0.81
L: $-1.27
H: 195.60M
A: 192.04M
L: 185.35M
Wolfspeed, Inc., a semiconductor company, focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising 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 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. On June 30, 2025, Wolfspeed, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.
3.90 USD
The 39 analysts offering 1 year price forecasts for WOLF have a max estimate of 7.00 and a min estimate of 1.50.