Wolfspeed Inc (WOLF) Stock Analysis
Verdict: AVOID
Severe cash burn, negative gross margins (-34.9%), and $1.80B debt pose existential dilution risk despite long-term SiC demand.
Investment score: 20/100
Analysis as of
Is Wolfspeed Inc stock worth reviewing? AI model thesis
The model assigns an AVOID recommendation with an investment score of 20/100. Despite long-term tailwinds in silicon carbide semiconductors for EVs, Wolfspeed's financial metrics exhibit severe operational distress, including negative TTM gross margin (-34.9%), $1.80B in total debt, and sustained annual cash burn (-$380.1M FCF in FY26).
7-factor investment score
- Valuation: 25/100 (weight 20%)
- Financial Health: 15/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 15/100 (weight 10%)
- Risk-Adjusted Return: 15/100 (weight 15%)
Wolfspeed Inc opportunities and risks
What speaks for WOLF
- Ramp of 200mm Mohawk Valley Fab could drive operational leverage by FY28
What speaks against WOLF
- Liquidity exhaustion and aggressive capital dilution risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| WOLF | n/a | 1.9x | n/a | -34.9% | -159.3% | -28.5% |
| AMBA | n/a | 6.8x | n/a | 58.3% | -13.5% | 0.3% |
| POWI | 108.8x | 6.1x | 66.7x | 53.6% | 5.6% | 2.9% |
| PENG | 34.8x | 1.7x | 16.3x | 27.9% | 6.4% | -2.5% |
| AMBQ | n/a | 15.7x | n/a | 43.6% | -37.8% | -2.5% |
| KOPN | 106.9x | 20.1x | 124.3x | 41.9% | 18.1% | -2.1% |
| Peer median | 34.8x | 6.8x | 16.3x | 43.6% | 5.6% | -2.1% |
Frequently asked questions about Wolfspeed Inc (WOLF)
Is WOLF stock a good investment?
The cached TradeMates AI model rates Wolfspeed Inc as AVOID with an investment score of 20/100. The model assigns an AVOID recommendation with an investment score of 20/100. Despite long-term tailwinds in silicon carbide semiconductors for EVs, Wolfspeed's financial metrics exhibit severe operational distress, including negative TTM gross margin (-34.9%), $1.80B in total debt, and sustained annual cash burn (-$380.1M FCF in FY26). This is algorithmic model output, not personal investment advice.
Is WOLF stock a buy?
The TradeMates model verdict for WOLF is AVOID with an investment score of 20/100. Treat this as a model signal to review, not a personal buy recommendation.