Wolfspeed: Big Plans Still Intact

Jan. 31, 2025 12:36 PM ETWolfspeed, Inc. (WOLF) StockWOLF79 Comments
(6min)

Summary

  • Wolfspeed remains poised for strong growth in the EV ecosystem despite short-term struggles and a CEO transition with a viable path to profitability.
  • The company reported mixed FQ2 results, with revenues down 13% YoY, but maintains a massive $30 billion order book and strong future prospects.
  • Wolfspeed's limited future capital requirements and significant cost cuts position it for EBITDA positivity at $1 billion in sales, reducing financial survivability fears.
  • Investors should capitalize on the stock's weakness to build positions in this silicon carbide leader as financial risks diminish and growth potential becomes clearer.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »

Electric car charging

piranka

Wolfspeed, Inc. (NYSE:WOLF) still remains on track for a strong future in the EV ecosystem. The silicon carbide company is in the process of replacing the CEO, but the future is extremely positive. My investment

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This article was written by

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Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in WOLF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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