Onfokus
Investment Thesis
Wolfspeed, Inc. (NYSE:WOLF) went through a rough patch last week and then skyrocketed quite a bit, and I'm here to say it's not too late to get in on the gains. At the start of last week, it was
This Wolf Isn't Dead Yet: Initiating Wolfspeed Stock With A Buy
Summary
- Wolfspeed, Inc. faces severe financial distress, with bankruptcy rumors and an 78% stock drop, but I believe the worst is priced in.
- Gallium nitride technology demand is surging, especially after Nvidia’s recent deal, positioning Wolfspeed’s tech for a potential turnaround.
- Despite debt and missed CHIPS Act funding, Wolfspeed’s low valuation and strategic assets make it an attractive acquisition target.
- I see a speculative opportunity here: if Wolfspeed secures a bailout or acquisition, the upside could be significant given current oversold levels.
- I hereon share my sentiment on Wolfspeed stock and why I see more upside in the near-term.
I’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.
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.