Wolfspeed's No Good, Terrible Friday May Just Be The Beginning

2025-04-01 08:58:50 ET

Summary

• Wolfspeed stock plummeted by half in one day due to funding issues, highlighting its fragility and poor financial health.
• WOLF stock has lost 90% of its value in 10 months, with no signs of recovery on the charts.
• Wolfspeed's financials are dire, with net debt over $5 billion and negative gross margins, making it a high-risk investment.
• I downgrade WOLF stock to Strong Sell, believing it has a significant chance of going to zero, even with potential CHIPS funding.

Beleaguered semiconductor name, Wolfspeed ( WOLF ), was absolutely clobbered at the end of last week, ceding about half it’s value in a single day. The beating the stock took was due to potential CHIPS act funding being revoked as the new administration continues to unravel policies put in place by the prior one. That would spell disaster for Wolfspeed, and shares were obliterated as a result....

Read the full article on Seeking Alpha

For further details see: