Wolfspeed: Still Not Convinced After The Bankruptcy - Earnings Preview
Wolfspeed is rated as a Sell with a $8.42 price target, significantly below its current ~$29 level, due to persistent operational weaknesses despite improved debt levels post-Chapter 11. The company has reduced debt by 70% and extended cash runway to 3.5 years, but continues to struggle with deeply negative gross margins and soft revenue guidance. A strategic shift from electric vehicles to AI and data center applications for silicon carbide components is underway, though profitability remains uncertain. Market optimism and a collaboration with Renesas appear already priced in, leaving limited room for upside.
- ▪Wolfspeed is rated Sell with a $8.42 price target versus a current share price of approximately $29.
- ▪The company emerged from Chapter 11 bankruptcy with 70% less debt and a 3.5-year cash runway.
- ▪Gross margins remain deeply negative and revenue guidance is weak despite the improved capital structure.
- ▪Wolfspeed is shifting focus from EVs to AI and data center applications for silicon carbide power devices.
- ▪The market may have already priced in optimism from the Renesas partnership and restructuring progress.
Full article excerpt tap to expand
{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://seekingalpha.com/"},{"@type":"ListItem","position":2,"name":"Tech ","item":"https://seekingalpha.com/stock-ideas/technology"}]}{"@context":"https://schema.org","@type":"NewsArticle","mainEntityOfPage":{"@type":"WebPage","@id":"https://seekingalpha.com/article/4894919-wolfspeed-stock-still-not-convinced-after-the-bankruptcy-earnings-preview"},"author":{"@type":"Person","name":"Andrea De Vico","url":"https://seekingalpha.com/author/andrea-de-vico"},"publisher":{"@context":"http://schema.org","@type":"Organization","address":{"@type":"PostalAddress","streetAddress":"244 5th Ave","addressLocality":"New York","addressRegion":"NY","postalCode":"10001","addressCountry":"US"},"alternateName":["SeekingAlpha","SA"],"brand":[{"@type":"Brand","name":"Seeking Alpha Premium","url":"https://seekingalpha.com/subscriptions/premium"},{"@type":"Brand","name":"Seeking Alpha PRO","url":"https://seekingalpha.com/subscriptions"},{"@type":"Brand","name":"Alpha Picks","url":"https://seekingalpha.com/alpha-picks/subscribe"},{"@type":"Brand","name":"Investing Groups by Seeking Alpha","url":"https://seekingalpha.com/marketplace/directory"}],"contactPoint":{"@type":"ContactPoint","telephone":"+1-347-509-6837","email":"[email protected]"},"description":"Founded in 2004, Seeking Alpha is an industry-leading financial research platform powered by one of the world's largest investing communities. We bridge the gap between financial information and actionable insight by providing unrivaled coverage on all asset classes and access to best-in-class tools. From in-depth analysis on thousands of stocks to timely investment ideas and market-beating Quant ratings*, Seeking Alpha is an essential resource for millions of investors globally.","email":"[email protected]","image":"https://seekingalpha.com/samw/static/images/OrganizationLogo.b472cbb2d.png","foundingDate":"2004","legalName":"Seeking Alpha","logo":{"@type":"ImageObject","height":60,"url":"https://seekingalpha.com/samw/static/images/PublisherLogo.1bcd2753c.png","width":360},"name":"Seeking Alpha","sameAs":["https://www.facebook.com/Seekingalpha","https://www.youtube.com/channel/UC9ZGkLwawKeG5C0Dt9FS-lQ","https://www.linkedin.com/company/seeking-alpha/","https://www.wikidata.org/wiki/Q3477676","https://www.instagram.com/seekingalpha/","https://x.com/SeekingAlpha","https://www.tiktok.com/@seekingalphaofficial","https://open.spotify.com/show/05uLjJxkVgQsRk8LWLCLpx","https://podcasts.apple.com/us/podcast/wall-street-breakfast/id1358381502"],"slogan":"Inform. Empower. Invest.","telephone":"+1-347-509-6837","url":"https://seekingalpha.com"},"datePublished":"2026-04-28T11:18:15.000Z","dateModified":"2026-04-28T11:21:10.000Z","description":"Wolfspeed (WOLF) rated Sell: $8.42 target vs ~$29 after Chapter 11. Despite lower debt, margins and guidance stay weak.","headline":"Wolfspeed: Still Not Convinced After The Bankruptcy - Earnings Preview","about":[{"@type":"Corporation","name":"Wolfspeed, Inc.","tickerSymbol":"NYSE…
This excerpt is published under fair use for community discussion. Read the full article at Seeking Alpha.
Discussion
0 commentsMore from Seeking Alpha
