Wolfspeed Is Stuck In A Downward Spiral

2025-04-23 04:55:59 ET

Summary

• Wolfspeed's stock has plummeted 90% over the past year, with short interest over 40%, indicating many traders believe the stock is headed to zero.
• Bond yields have cleared 50%, with recent reporting and clues from a recent update both suggesting Wolfspeed was unable to refinance existing debt.
• There is a narrow path for Wolfspeed to repay near-term debt and turn profitable before 2029–2030 maturities, but it's tight, and the trade war adds an unexpected obstacle.
• The upside is huge if Wolfspeed can find that path, but the odds of zero are exceptionally high, with the plunge in stock and bond prices adding even more pressure.

If Wolfspeed ( WOLF ) stock proves to be a winner, it's going to be a huge winner....

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