Wolfspeed, Inc. is a semiconductor company focused on silicon carbide and gallium nitride materials and devices for power applications. It offers silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers, as well as power devices such as silicon carbide Schottky diodes, MOSFETs, and power modules. These products serve automotive applications including electric vehicles and fast charging, and industrial and energy applications such as AI data centers, grid modernization, and renewable energy and storage. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Founded in 1987, it is headquartered in Durham, North Carolina.
Wolfspeed's AI Hype Meets a Brutal Earnings Reality Check
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AI data center demand signal lifts power semis Mizuho flagged a faster ramp of NVIDIA's Vera Rubin AI systems, with power content per rack jumping from $15,000 to $115,000. Wolfspeed rose 5.7% as investors bet on more chip demand. This shows the AI growth story that has driven the stock is still alive.
It explains the positive force behind WOLF's move this period: AI data center demand expectations.
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Q4 earnings miss shatters growth narrative Wolfspeed reported a quarterly loss of $2.26 per share, far worse than the $0.52 expected, on revenue of $149.6 million that missed estimates. Revenue fell 24% from a year ago and gross margin turned negative. The stock plunged over 10% as the AI-driven growth that doubled last year appears to have stalled.
It is the single biggest new event this period and directly explains the sharp drop in WOLF's price.
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Weak guidance signals no near-term recovery Management guided to about $150 million in revenue for the current quarter, essentially flat with the just-reported quarter. That tells investors the AI data center growth that more than doubled in fiscal 2026 has stalled, removing the main reason many held the stock. Without a clear rebound, the stock faces continued pressure.
It shows the forward-looking problem that keeps WOLF's price down beyond the one-time earnings miss.
Q3 2026
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Wolfspeed's AI Growth Stalls as Earnings Miss, Shares Plunge
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AI Data Center Qualification Wolfspeed's silicon carbide chips qualified for LITEON's AI data center power systems, a key win that initially boosted investor optimism about demand from AI infrastructure.
This was a new positive development that drove early-quarter momentum.
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Patent Lawsuit Against Navitas Wolfspeed sued Navitas for patent infringement, signaling defense of its technology and potentially limiting competition in the silicon carbide market.
This legal action was a new event that could protect Wolfspeed's market position.
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Aerospace MoU with GE Wolfspeed signed a memorandum of understanding with GE for aerospace applications, opening a new potential market for its power electronics.
This partnership represented a new growth avenue beyond AI data centers.
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Q4 Earnings Miss and Stalled Growth Q4 earnings badly missed expectations with a $2.26 per-share loss, revenue down 24% year-over-year, and negative gross margins; flat guidance signaled that AI-driven growth had stalled, causing shares to plunge over 10%.
This was the major negative event that erased earlier gains and left the stock under pressure.
News & notes movingWOLF
United States
Artificial Intelligence▲
Three Sub-$50 Chip Stocks Offer AI Power Exposure
Navitas Semiconductor, Alpha and Omega Semiconductor, and Wolfspeed are three sub-$50 chip stocks offering direct exposure to the AI power buildout shifting data center racks from 48V to 800V architectures. Navitas, designed into NVIDIA's 800V MGX rack ecosystem, guided AI infrastructure to represent more than one-third of total sales by year-end, with a one-year base-case target of $16.18. Alpha and Omega trades at a forward P/E of just 8, with AI and server revenue expected to grow more than 60% sequentially and a base-case target near $51. Wolfspeed, the post-restructuring wildcard, saw AI data center revenue more than double year-over-year and launched a fifth-generation SiC MOSFET, with a base-case target of $31.76.
Wolfspeed shares tumbled 15.2% through 11:40 a.m. ET Thursday after the silicon carbide power module-maker badly missed fiscal Q4 2026 earnings expectations. Analysts had expected a loss of $0.52 per share on sales of $223.6 million, but Wolfspeed reported a loss of $2.26 per share on revenue of just $149.6 million. Revenue plunged 24% year over year, and gross profit margin turned negative at 25%, meaning the company lost $1.25 for every dollar of sales before operating costs. The GAAP net loss was even worse at $2.81 per share. Management guided to about $150 million in revenue for fiscal Q1 2027, nearly flat with Q4, suggesting the AI-driven data center growth that more than doubled year-over-year in fiscal 2026 has stalled.
Walmart, Moderna, Alibaba lead premarket stock moves
Several companies made notable premarket moves on Thursday. Walmart dropped 6% after its U.S. comparable sales grew 2.6%, missing the 3.5% FactSet estimate, and its earnings guidance fell short. Crypto stocks rose as Bitcoin and ether surged on President Trump's push for crypto-friendly legislation, with Coinbase up nearly 7% and Strategy jumping 10%. Alibaba fell 3.4% after reporting a 75% drop in quarterly profit due to higher AI spending. Moderna shed 7% a day after soaring 177% on positive late-stage cancer vaccine trial results. Advance Auto Parts tumbled nearly 15% after revenue of $1 billion missed the $2.04 billion LSEG estimate. Coty slipped 14.5% after a larger-than-expected quarterly loss and a warning that fiscal 2027 will be a transition year. Wolfspeed fell 10% after quarterly revenue of $149.6 million missed the $150 million FactSet consensus. NetEase slipped nearly 4% after its quarterly earnings missed analyst estimates.
Deere jumps on upbeat Q3, Wolfspeed plunges on wider loss
U.S. stock futures were little changed on Thursday as investors assessed a fresh batch of corporate earnings and analyst actions. CrowdStrike shares fell 2.8% in premarket trading after Bloomberg reported that the cybersecurity company's chief technology officer is departing to launch an artificial intelligence-focused cybersecurity fund. Advance Auto Parts stock plunged 15.9% after its second-quarter results revealed a significant difference between headline earnings and underlying performance, with about $0.31 of the reported $1.03 adjusted diluted earnings per share coming from one-time tariff refunds. Deere shares jumped 5.1% after the agricultural and construction equipment maker delivered a stronger-than-expected fiscal third quarter, with diluted earnings per share of $5.10 and net sales of about $11 billion. Etsy gained 3.9% in premarket trading after BofA Securities upgraded the online marketplace to Buy from Neutral and raised its price target to $105 from $88. Ultragenyx surged 11.1% after the U.S. Food and Drug Administration granted accelerated approval to GENGLYCOS, also known as DTX401, a gene therapy for glycogen storage disease type Ia in patients aged eight and older. Moderna shares fell 13% in premarket trading, retreating after more than doubling in the previous session following the company's major cancer-vaccine trial announcement with Merck. Wolfspeed plunged 10.5% after the semiconductor company reported a sharply wider-than-expected fiscal fourth-quarter loss, with an adjusted loss of $2.26 per share and revenue of $149.6 million. Webull rose 13.8% after the digital brokerage reported its strongest quarterly results since going public, with second-quarter revenue of $198.8 million and adjusted earnings of $0.05 per share.
AAP · Capital · Negative Q2 results showed headline EPS inflated by one-time tariff refunds, revealing weak underlying performance.
BULL · Capital · Positive Strongest quarterly results since going public with revenue and adjusted EPS beating expectations.
DE · Capital · Positive Stronger-than-expected fiscal Q3 with EPS of $5.10 and net sales of $11 billion.
ETSY · Capital · Positive Upgraded to Buy from Neutral with price target raised to $105 from $88.
RARE · Regulation · Positive Ultragenyx surged 11.1% after the FDA granted accelerated approval to GENGLYCOS, a gene therapy for glycogen storage disease type Ia.
WOLF · Capital · Negative Wolfspeed plunged 10.5% after reporting a sharply wider-than-expected fiscal fourth-quarter loss, with an adjusted loss of $2.26 per share and revenue of $149.6 million.
Webull, Ultragenyx lead gainers; Wolfspeed, Coty slide
Stock futures were lower early Thursday as persistent geopolitical tensions in the Middle East drove Brent crude over $92 a barrel, reinforcing broader inflation concerns. Webull shares climbed 14% after the digital investment platform reported record Q2 revenue of $198.8M, up 51% Y/Y and 24% Q/Q, beating estimates of $180.7M, while Ultragenyx Pharmaceutical surged 12% after the FDA granted accelerated approval to Genglycos, its gene therapy for glycogen storage disease type Ia. Circle Internet Group gained 5% alongside a broader rally in crypto-linked stocks as Bitcoin climbed more than 9% to around $71K, its highest level since June 2, following the U.S. Treasury's surprise decision to double planned buybacks of longer-dated Treasuries to at least $4B per operation. Wolfspeed plunged 10% after reporting a wider-than-expected FQ4 adjusted loss of $2.26 per share, versus the $1.47 consensus, while revenue rose 24% Y/Y to $149.6M, and Coty tumbled 9% after mixed FQ4 results with LFL revenue down 1% and adjusted operating income plunging 31%.
Power Semis Rally on Mizuho's Faster NVIDIA Vera Rubin Ramp Signal
Wolfspeed, STMicroelectronics, and ON Semiconductor rallied Monday after Mizuho flagged a faster NVIDIA Vera Rubin ramp anchored by xAI and Meta starting in the fourth quarter of 2026. Wolfspeed rose 5.74% to $33.61, STMicroelectronics gained 4.17% to $56.56, and ON Semiconductor added 2.96% to $85.11. Mizuho expects strong VR200 NVL72 ramps in 2027, with 2027 CoWoS growing more than 75% and cloud service provider backlog now at $2.3 trillion, up 3.5 times year over year. ON Semiconductor says power content per rack rises from $15,000 to $115,000 under 800-volt DC architecture, with AI data center revenue expected to more than double in 2026. The next checkpoints are ON Semiconductor's Analyst Day on September 16, 2026, and NVIDIA's next quarterly update.
AXT soared again on Monday to lead optics stocks, with Coherent and Lumentum rallying on indium phosphide price hikes. AXT climbed 13.71% intraday to $92.83, extending a year-to-date gain of 399.33%, while Coherent rose 8.12% and Lumentum added 6.79%. The catalyst was a United Daily News report of Q4 indium phosphide substrate price increases topping 10%, the largest on record, versus earlier expectations of 3% to 5%. AXT's Q2 2026 revenue hit $47.6 million, up 164% year over year, with indium phosphide revenue at a record $30.7 million and non-GAAP gross margin of 45.0%. Coherent guided fiscal Q1 revenue to $2.2 billion to $2.4 billion, and Lumentum guided Q1 revenue to roughly $1.25 billion. WOLF climbs 6% Monday as a Mizuho note flags strong VR200 NVL72 ramps, adding a power-supply tailwind to the broader optics surge. NVIDIA disclosed a $3 billion stake in Coherent equal to nearly 5% of its 13F portfolio, and D.E. Shaw holds 2.25 million AXTI shares.
Wolfspeed and LITEON partner on silicon carbide tech for hyperscale AI data centers
Wolfspeed and LITEON Technology announced a strategic partnership and the successful qualification of Wolfspeed's silicon carbide technology for deployment within LITEON's 800 VDC power sidecar and compute rack PSU platforms. These platforms are designed to support next-generation AI data centers for leading hyperscale customers, with the potential for broader adoption across multiple cloud service provider platforms and future deployments. LITEON is collaborating with Wolfspeed to leverage silicon carbide technology and its 200 mm silicon carbide manufacturing platform in support of hyperscale AI infrastructure deployments.
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Supply
Artificial Intelligence › AI Power & Cooling ▲Technology
Semiconductors › Analog, Power & Discrete ▲Demand
WOLF · Demand · Positive Wolfspeed's SiC technology qualified for LITEON's AI data center platforms, securing a key customer and potential broader adoption.
2301.TW · Demand · Positive LITEON partners with Wolfspeed to deploy SiC tech in its AI data center PSU platforms, enhancing its product offerings for hyperscale customers.
Renesas records 63.3 billion yen finance income on Wolfspeed stake
Renesas Electronics Corporation recorded finance income of 63,254 million yen for the three months ended June 30, 2026, driven by valuation gains on other financial assets held in relation to Wolfspeed. The gains primarily reflect the rise in Wolfspeed's share price. For the six months ended June 30, 2026, finance income totaled 57,406 million yen, as finance costs of 5,795 million yen had been recorded in the prior quarter.
Wolfspeed appoints semiconductor veteran Andy W. Mattes to its board
Wolfspeed has appointed technology executive Andy W. Mattes to its Board of Directors, effective immediately. Mattes brings more than 40 years of leadership experience in the semiconductor and advanced technology industries, including former CEO roles at Coherent and Diebold Nixdorf and senior positions at Hewlett Packard, Siemens, and McKinsey & Company. He also holds board seats at AT&S AG, ams OSRAM AG, and Cohu, Inc. CEO Robert Feurle said Mattes' strategic perspective and industry expertise will support the company's next phase of growth as it reinforces its market leadership in silicon carbide.
Zacks Highlights GE Aerospace, RTX, General Dynamics as Top Aerospace-Defense Buys
Zacks Investment Research identifies GE Aerospace, RTX Corporation, and General Dynamics as three aerospace-defense stocks to buy amid strong industry tailwinds. The industry benefits from rising global defense spending, military modernization, and growing commercial air travel, though supply-chain disruptions remain a headwind. GE Aerospace recently signed a memorandum with Wolfspeed to advance silicon carbide technology for aerospace and defense applications, while RTX's Raytheon launched feasibility studies with NATO to expand AMRAAM missile production in Europe. General Dynamics ended the first quarter of 2026 with a solid backlog of $130.84 billion and an estimated total contract value of $188.44 billion. All three stocks carry a Zacks Rank #2, or Buy, with consensus estimates projecting year-over-year sales and earnings growth for 2026.
GE · Technology · Positive GE Aerospace signed a memorandum with Wolfspeed to advance silicon carbide technology for aerospace and defense applications.
GD · Demand · Positive Rising global defense spending and military modernization boost demand for General Dynamics' products, supported by a large backlog.
RTX · Demand · Positive RTX's Raytheon launched feasibility studies with NATO to expand AMRAAM missile production in Europe, indicating strong demand.
WOLF · Technology · Positive Wolfspeed's silicon carbide technology is being advanced for aerospace and defense applications through a memorandum with GE Aerospace.
Navitas Semiconductor shares drop 45% in 30 days amid Wolfspeed patent lawsuit
Navitas Semiconductor faces a valuation test after Wolfspeed filed a patent infringement lawsuit targeting its gallium nitride and silicon carbide power chip products. The stock last closed at $13.36, down 4.5% in a single day and 45.4% over the past 30 days, though its one-year total shareholder return remains at 107.8%. Analysts have set a consensus price target of $8.15, with estimates ranging from a bullish $13.00 to a bearish $4.20, implying the stock may be overvalued relative to that narrative fair value. Revenue softness in EV, solar, and industrial markets, along with gross margin pressure, could challenge the optimistic growth outlook.
Small-Cap ETF Could Be the Best Investment of 2026 as Russell 2000 Surges 20%
Small-cap stocks were the best-performing asset class in the first half of 2026, with the Russell 2000 index up 20% year to date, outperforming the S&P 500, Nasdaq, S&P 400 mid-cap index, and Russell 1000. Over the past 12 months, the Russell 2000 has returned 35%, compared to 27% for the Nasdaq and 20% for the S&P 500. The surge is driven by a rotation out of overvalued large-caps, an expanding AI supply chain benefiting small-cap semiconductor stocks like Aehr Test Systems, MaxLinear, Navitas, and Wolfspeed, a robust mergers and acquisitions market, and small-cap earnings expected to grow 38% to 48% in 2026, roughly double the S&P 500's rate. While declining rates have helped, potential Federal Reserve rate hikes and inherent volatility pose risks, making a small-cap ETF a prudent choice. An actively managed option like the Fidelity Enhanced Small-Cap Core ETF, up 26% year to date, offers diversified exposure.
GE Aerospace Tightens Governance, Declares $0.47 Dividend
GE Aerospace amended its by-laws on June 25, 2026 to tighten shareholder nomination procedures, clarify proxy card requirements, and designate New York and federal courts as exclusive forums for key corporate and securities disputes, while also declaring a US$0.47 per-share dividend payable on July 27, 2026. The governance and capital-return moves come as the company highlights its GE9X engine and expands partnerships such as a silicon carbide agreement with Wolfspeed. Investors are focused on the upcoming July 16 earnings results, with the narrative projecting $59.2 billion in revenue and $10.8 billion in earnings by 2029, though bearish analysts see only 5.6% annual revenue growth to about US$56.9 billion and thinner margins. The Wolfspeed agreement is seen as part of GE Aerospace's longer-term technology roadmap amid evolving propulsion technologies and regulatory focus on efficiency and emissions.
Humanoid robot component stocks surge on supply-chain optimism
Component makers tied to the humanoid robotics supply chain rallied sharply on Tuesday as investors sought out specialist suppliers. Sensor makers Ouster, Cognex, and Allegro Microsystems closed up 15.6%, 5.9%, and 4.9% respectively, while edge AI vision processor maker Ambarella surged 28%. Motor makers like Nidec, RBC Bearings, Regal Beloit, and Ametek closed between 1% and 8% higher, with Regal Beloit gaining 8.3% after Kerrisdale Capital disclosed a long position citing the physical AI angle. AI brain maker NVIDIA gained 2.6%, battery maker Enersys rose 4.3%, and power electronics names such as Wolfspeed surged 9%. The moves highlight that component suppliers sell into multiple robot OEMs simultaneously, meaning any broad acceleration in humanoid build rates lifts the entire component tier. However, Reuters reported on June 29 that doubts are creeping into the broader AI trade, with a Bank for International Settlements warning that AI and automation asset valuations may be overextended, a caution directly relevant to high-multiple humanoid component names.
GE Aerospace to showcase GE9X engine at Great American State Fair
GE Aerospace will display its GE9X engine, the world's largest and most powerful commercial jet engine, at the Great American State Fair on the National Mall as part of America's 250th anniversary celebration. The GE9X will power the Boeing 777X, which is expected to enter service in early to mid-2027. In a separate development, GE Aerospace signed a memorandum of understanding with Wolfspeed to accelerate the use of high-voltage silicon carbide in industrial, aerospace, and defense applications, including the supply of Wolfspeed's 10 kV MOSFET die and joint development of standard power modules. Chris Hohn's TCI Fund holds approximately $13.5 billion in GE Aerospace stock, making it the fund's largest position.
Semiconductors › Analog, Power & Discrete ▲Technology
GE · Technology · Positive Showcasing GE9X engine and signing MoU with Wolfspeed for silicon carbide technology development.
WOLF · Demand · Positive MoU with GE Aerospace to supply 10 kV MOSFET die and jointly develop power modules.
BA · Demand · Positive GE9X engine display and 777X service entry in 2027 signal potential future demand for Boeing's aircraft.
TCI Fund Management (The Children's Investment Fund Management LLP) · Capital · Positive TCI Fund holds $13.5B in GE Aerospace stock as its largest position, indicating confidence.
Energy Investor Calls EVs the Keystone Species of an Electric Supercycle
Energy investor Andy Lubershein described electric vehicles as the keystone species of an emerging electro-industrial tech stack, arguing that EV unit volume drove down battery costs and scaled silicon carbide technology from cars to grid applications. Speaking on the Catalyst with Shayle Kann podcast, Lubershein outlined four building blocks—solar photovoltaics, lithium-ion batteries, electric vehicles, and power electronics—with power electronics acting as the connective tissue. Tesla reported first-quarter fiscal 2026 revenue of $22.39 billion, a 15.78 percent year-over-year increase, and an automotive gross margin of 21.1 percent, but its shares trade near $400.49 against a consensus analyst target of $420.55 and a trailing price-to-earnings ratio of 371. Among power-electronics plays, Wolfspeed has rallied 229.75 percent year-to-date, On Semiconductor is up 124.6 percent, and Navitas Semiconductor carries a price-to-sales ratio of 138 as it pivots to AI data centers and grid electrification.
NVTS · Demand · Positive Article highlights power electronics as key to electric supercycle, and Navitas pivots to AI data centers and grid electrification, implying demand growth.
ON · Demand · Positive On Semi is up 124.6% YTD as a power-electronics play benefiting from EV and grid trends described.
WOLF · Demand · Positive Wolfspeed rallied 229.75% YTD as a power-electronics beneficiary of the EV-driven supercycle.
TSLA · Demand · Neutral Tesla is mentioned as the keystone species driving battery cost declines and SiC scaling, but its own Q1 results are reported without a clear directional impact from the article.
GE Expands Board and Deepens Aerospace, Power, and Nuclear Technology Ties
General Electric moved to expand its board by electing Microsoft executive Judson Althoff as an independent director, while GE Aerospace deepened its role in advanced technologies through support for Starfighters Space's STARLAUNCH 1 design review and a Memorandum of Understanding with Wolfspeed on high-voltage silicon carbide power modules. Alongside these developments, GE Vernova's small modular reactor component partnership in Ontario highlights how the group is tying aerospace, power electronics, and nuclear technologies more closely into emerging energy and space ecosystems. The Wolfspeed agreement speaks directly to high-voltage power electronics that could feed into future aerospace and defense platforms, sitting alongside programs like RISE and GE9X as part of the broader effort to maintain technology leadership, even if its financial impact will take time to show up. General Electric's narrative projects $59.2 billion in revenue and $10.8 billion in earnings by 2029, requiring 7.0% yearly revenue growth and about a $2.2 billion earnings increase from $8.6 billion today.
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