Wolfspeed
WOLF
$31.79
+0.89%
Wolfspeed, Inc. is a semiconductor company that develops and manufactures silicon carbide (SiC)-based power electronics, including MOSFETs, Schottky diodes, and power modules, serving industries such as electric vehicles, renewable energy, and industrial systems. As a pioneer in SiC technology, Wolfspeed holds a distinct competitive position as a pure-play leader in wide-bandgap semiconductors, though it faces intense competition from larger diversified players. The current investor narrative centers on a dramatic turnaround story: after emerging from bankruptcy in late 2025, the stock has surged over 2,300% in the past year, driven by a strategic pivot to high-margin defense and industrial markets, particularly a partnership with GE Aerospace, and speculative bets on SiC's role in AI data centers. However, the company continues to grapple with severe operational losses, negative gross margins, and a heavily leveraged balance sheet, creating a high-risk, high-reward debate among investors.…
WOLF
Wolfspeed
$31.79
Related headlines
Investment Opinion: Should I buy WOLF Today?
Rating: Hold. Wolfspeed is a speculative turnaround with a single analyst target of $30.00, implying -5.6% downside. The thesis is that the strategic pivot to defense and AI could eventually drive growth, but the current financials do not support a buy. The stock is not suitable for risk-averse investors, but for those with high risk tolerance, it offers potential upside if the pivot succeeds.
Sign up to view all
WOLF 12-Month Price Forecast
The AI assessment is neutral with low confidence due to the extreme uncertainty. The company has a compelling narrative around SiC for AI data centers, but the financials do not support it yet. The stock is highly speculative, and the lack of analyst coverage makes it difficult to gauge fair value. I would upgrade to bullish if revenue growth turns positive and gross margins improve, and downgrade to bearish if the company announces a dilutive offering or loses a key customer.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Wolfspeed's 12-month outlook, with a consensus price target around $30.00 and implied upside of -5.6% versus the current price.
Average Target
$30.00
0 analysts
Implied Upside
-5.6%
vs. current price
Analyst Count
—
covering this stock
Price Range
$30 - $30
Analyst target range
Analyst coverage on Wolfspeed is extremely limited, with only 1 analyst providing a target price, which is set at $30.00 for both the low and high estimates, resulting in an average target of $30.00. This implies a downside of approximately -5.6% from the current price of $31.79, suggesting a slightly bearish outlook. The consensus recommendation is 'none', reflecting the lack of a clear bullish or bearish stance, and the single target price indicates minimal coverage, which is typical for a company that recently emerged from bankruptcy and has a small market cap of around $1.04 billion.
Drowning in data?
Find the real signal!
Bulls vs Bears: WOLF Investment Factors
Wolfspeed presents a high-risk, high-reward turnaround story with extraordinary momentum but severe fundamental weaknesses. The bull case rests on the strategic pivot to defense and AI, a clean balance sheet post-bankruptcy, and massive market enthusiasm, while the bear case is anchored in persistent revenue declines, negative gross margins, and a leveraged balance sheet. Currently, the bearish evidence is stronger due to the lack of profitability and declining revenue, but the speculative AI narrative could shift the balance if the company executes on its defense contracts. The most critical tension is whether the strategic pivot can generate enough revenue growth to offset the operational losses and justify the current valuation.
Bullish
- Strategic pivot to high-margin defense: Wolfspeed's partnership with GE Aerospace and focus on defense and industrial markets offers a new growth path with higher margins, de-risking the business from the struggling EV market. This pivot is a key driver of the recent 2,345% stock surge, reflecting investor optimism about the defense opportunity.
- Clean balance sheet post-bankruptcy: Emerging from bankruptcy in late 2025 has allowed Wolfspeed to shed legacy debt, with debt-to-equity now at -14.64, indicating a net cash position. This financial restructuring provides a cleaner foundation for future operations and reduces immediate solvency risk.
- Speculative AI data center potential: Silicon carbide is increasingly seen as critical for powering next-generation AI data centers due to its efficiency in high-power applications. The Benzinga article highlights a 100% monthly surge driven by this speculative bet, suggesting significant upside if the AI narrative materializes.
- Strong relative strength over 1 year: Wolfspeed's 1-year relative strength versus the S&P 500 is +2,325%, vastly outperforming the market. This demonstrates powerful momentum and investor conviction in the turnaround story, which could continue if execution improves.
Bearish
- Persistent revenue decline: Revenue fell 19.0% year-over-year to $150.2 million in Q3 FY2026, marking the fourth consecutive quarter of decline. Sequential declines from $168.5M and $196.8M in prior quarters indicate a clear deceleration, raising doubts about the company's ability to stabilize its top line.
- Severe operational losses: Gross margin is deeply negative at -26.6% in Q3 FY2026, with net income of -$119.9 million and EBITDA of -$37.2 million. The company is burning cash at an alarming rate, with free cash flow TTM of -$750.3 million, indicating unsustainable operations.
- Heavy leverage and negative equity: EV/Sales of 3.07x versus PS of 1.38x highlights a substantial debt load, and debt-to-equity of -14.64 reflects negative shareholder equity. The current ratio of 0.36 suggests severe liquidity constraints, with current liabilities far exceeding current assets.
- Minimal analyst coverage and bearish target: Only one analyst covers the stock, with a target price of $30.00, implying -5.6% downside from the current price of $31.79. The consensus recommendation is 'none', reflecting a lack of institutional endorsement and a cautious outlook.
WOLF Technical Analysis
Wolfspeed's price trend over the past year has been nothing short of extraordinary, with a 1-year change of +2,345.4%, reflecting a massive recovery from its 52-week low of $8.05. The current price of $31.79 sits at approximately 39.3% of the 52-week range (calculated as (31.79 - 8.05) / (80.82 - 8.05)), indicating the stock is well off its highs but still significantly above its lows. This positioning suggests a market that has priced in substantial recovery but remains cautious about the sustainability of the rally, as the stock trades far from its peak of $80.82.
Beta
—
—
Max Drawdown
-72.7%
Largest decline past year
52-Week Range
$8-$81
Price range past year
Annual Return
+2345.4%
Cumulative gain past year
| Period | WOLF Return | S&P 500 |
|---|---|---|
| 1m | -9.4% | +4.5% |
| 3m | -48.8% | +5.1% |
| 6m | +79.2% | +13.7% |
| 1y | +2345.4% | +20.6% |
| ytd | +67.9% | +13.8% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
WOLF Fundamental Analysis
Wolfspeed's revenue trajectory is concerning, with the most recent quarter (Q3 FY2026, ended March 29, 2026) reporting revenue of $150.2 million, a 19.0% decline year-over-year (from $185.4 million in Q3 FY2025). This marks the fourth consecutive quarter of declining revenue, with sequential declines from $168.5 million in Q2 FY2026 and $196.8 million in Q1 FY2026, indicating a clear deceleration. The revenue breakdown shows Power Products contributing $100.1 million (66.6% of total) and Materials Products $50.1 million (33.4%), but both segments are under pressure as the company pivots away from the EV market. The persistent revenue decline raises questions about the company's ability to stabilize its top line amid its strategic transition.
Quarterly Revenue
$150200000.0B
2026-03
Revenue YoY Growth
-19.0%
YoY Comparison
Gross Margin
-26.6%
Latest Quarter
Free Cash Flow
$-750300000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is WOLF Overvalued?
Given that Wolfspeed has negative net income (net income of -$119.9 million in the latest quarter) and negative EBITDA, the appropriate valuation metric is the price-to-sales (PS) ratio, as earnings-based multiples are meaningless. The trailing PS ratio stands at 1.38x, while the EV/Sales ratio is 3.07x, reflecting the company's substantial debt load. The gap between PS and EV/Sales highlights the significant leverage in the capital structure, which is a critical risk factor. The negative forward PE of -6.26x further underscores that analysts expect continued losses, making PS the only viable comparison metric.
PE
-0.6x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-6.8x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are extreme: Wolfspeed's gross margin is -26.6%, meaning it loses money on every product sold, and net income is -$119.9 million on revenue of $150.2 million. The company's free cash flow is -$750.3 million TTM, indicating a massive cash burn that requires continuous external funding. With a current ratio of 0.36, the company faces severe liquidity risk, and the negative debt-to-equity of -14.64 reflects negative shareholder equity, leaving no buffer for creditors. The interest expense of $52.1 million in Q3 FY2026 further drains resources, and the company's reliance on continued financing makes it vulnerable to credit market conditions.
