The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 16 | — | 20.8x | Bottom tier | |
Growth | 51 | -28.5% | 6.1% | Around median | |
Quality | 7 | -20.9% | 6.6% | Bottom tier | |
Safety | 25 | — | 0.7x | Bottom tier | |
Capital Return | 98 | — | 2.02% | Top tier | |
Momentum | 75 | — | 4.1% | Top tier | |
Sentiment | 32 | 1 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Wolfspeed Inc. is a company specializing in silicon carbide technology, and its business centers on power devices and related materials. Management presents the company across four market paths: automotive, industrial and energy including artificial intelligence data centers, aerospace and defense, and materials. The company generates its revenue from selling power devices such as MOSFETs, discrete products, and modules, and from selling silicon carbide materials, with device production moving to 200 millimeter wafers at the Mohawk Valley facility and Durham facilities remaining a foundation for materials capabilities and longer-term 300 millimeter development.
In the third quarter of fiscal 2026, Wolfspeed recorded revenue of $150.2 million according to EDGAR data, and management had described it on the call as about $150 million and in line with the midpoint of guidance. The GAAP gross loss was $40.0 million, or a gross margin of approximately negative 26.6% on an EDGAR basis, while management pointed to a non-GAAP gross margin of negative 20.6% with a double-digit percentage-point improvement compared with the prior quarter. The company recorded a net loss of $119.9 million and earnings per share of negative $3.05, confirming that the operating improvement has not yet reached sustainable net profitability.
The third-quarter mix was clear: about $100 million of power revenue and about $50 million of materials revenue, with materials revenue stable sequentially. Of power device revenue, 90% came from the Mohawk Valley 200 millimeter device facility, while 10% came from final sales of 150 millimeter device inventory after closing 150 millimeter device production in Durham ahead of schedule. On a last twelve months basis for 2026, the data show revenue of $347.0 million, a gross loss of $117.1 million, and net income of $300.3 million, but the first and third quarters of fiscal 2026 included large net losses of $643.6 million and $119.9 million, respectively.
The analyst consensus on WOLF is Neutral, and the average price target is $20, while both the highest and lowest targets mentioned are also $20, meaning the sample of targets in the data is very narrow. The textual data do not mention a fixed real-time share price, so the price displayed automatically outside the text should be compared with this target to determine whether the stock is above or below it. No price-to-earnings multiple appears for the company in the data, and the 52-week range between $8.05 and $80.82 reflects significant volatility in the market valuation of a company whose gross margins remain negative despite improvement in its cash and debt position.
Figures in the text are as of 2026-07-09; the live price is shown at the top of the page.
Wolfspeed operates in silicon carbide technology for power devices and materials, and focuses on automotive, industrial and energy, aerospace and defense, and materials applications. In the third quarter of fiscal 2026, it generated about $100 million from power revenue and about $50 million from materials revenue. Management said 90% of power device revenue came from the Mohawk Valley 200 millimeter device facility, while 10% came from final sales of 150 millimeter device inventory. The company also sees a longer-term opportunity in 300 millimeter materials, particularly in packaging and thermal and mechanical solutions tied to artificial intelligence and high-performance computing.
The GAAP gross loss was $40.0 million on revenue of $150.2 million in the third quarter, meaning the GAAP gross margin was negative. On a non-GAAP basis, management stated that gross margin was negative 20.6%, but it improved by double-digit percentage points compared with the prior quarter. The largest factor mentioned by the company was underutilization of manufacturing capacity, whose cost was about $46 million in the quarter. Therefore, management linked future profitability improvement to increasing the loading of the Mohawk Valley facility and improving quality, cost, and speed in manufacturing.
Automated analysis for informational purposes only — not investment advice.
Wolfspeed views artificial intelligence data centers as a growth opportunity within the industrial and energy line, particularly in the transition from 400 volt to 800 volt architectures. Management said the TOLT portfolio is designed for artificial intelligence rack power, and that the company is collaborating with partners in the artificial intelligence ecosystem. Revenue from data center applications grew by about 50% from the first quarter to the second quarter, then by about 30% from the second quarter to the third quarter, but it is still not a large part of total revenue. Management also said that the applications that may convert to revenue fastest could be power supplies, while solid-state transformers may come over a longer time frame.
In the third quarter, the company announced private offerings of 1.5 lien convertible secured notes, common stock, and pre-funded warrants, and achieved about $476 million in gross proceeds. Wolfspeed used the proceeds to reduce the balance of first-lien senior secured notes by about 43%, and reduced total debt principal by about $97 million according to management. The company expects this to reduce annual interest expense by about $62 million, with the first debt maturity remaining in 2030. The company ended the quarter with about $1.2 billion of cash and short-term investments, and CFIUS clearance and the issuance of equity rights to Renesas also increased equity by more than $400 million during the quarter.
Management is targeting revenue between $140 million and $160 million in the fourth quarter of fiscal 2026. It expects the non-GAAP gross margin to remain negative, meaning the operating improvement has not yet reached a margin break-even point. It also expects operating expenses to remain close to the third-quarter level, where they were $61 million on a non-GAAP basis. Management added that near-term automotive demand remains uncertain, while it sees encouraging momentum in artificial intelligence data centers and industrial and energy applications.
On July 7, 2026, there was news that Wolfspeed is suing Navitas for alleged semiconductor patent infringement, and the impact was classified as mixed with an impact score of 6 out of 10. The data do not provide a legal outcome or a specific financial impact for this lawsuit, so its main implication remains that it adds a legal file to the stock story. As for insider activity, its indication is neutral, and there were no purchases or sales during the last three months according to the data. The last insider transaction mentioned was dated October 31, 2025, with no recent net activity that supports a clear positive or negative reading.