Key Highlights

  • A June 9 MoU with GE Aerospace to co-develop high-voltage SiC power modules for industrial, aerospace, and defence markets anchored two consecutive double-digit session gains for WOLF last week.
  • WOLF is trading at $59.61 pre-market June 22, up 3.81% from the June 18 close of $57.43, recovering sharply from multi-week lows in the low-$40s on deal momentum and a restructured balance sheet with debt reduced approximately 70% through a 2025 reorganisation.
  • The company continues to carry negative gross margins with analyst price targets well below current trading levels, though sequential gross margin improvement is guided for fiscal Q3.

Deal Momentum Extends Into the New Week

Wolfspeed, Inc. (NYSE: WOLF) is trading at $59.61 pre-market June 22, up 3.81% from the June 18 close of $57.43. Wolfspeed is a Durham, North Carolina-based semiconductor company and self-described pioneer of silicon carbide technology, operating as the only pure-play, vertically integrated SiC manufacturer in the United States. Founded in 1987 as Cree Inc. and rebranded in October 2021, the company develops SiC wafers, epitaxial products, power devices, MOSFETs, power modules, and GaN-based RF devices for EV, renewable energy, 5G, aerospace, and defence markets. Wolfspeed held a 33.7% market share in SiC materials in 2024 and generated approximately $807 million in fiscal year 2024 revenue. With approximately a market capitalisation of $2.78 billion, and a balance sheet carrying approximately 70% less debt following a 2025 reorganisation, WOLF is led by CEO Robert A. Feurle.

The pre-market continuation extends two consecutive double-digit session gains: approximately 8.20% on June 17 amid a broad semiconductor sector rebound and a further surge the following session fuelled by the June 9 MoU with GE Aerospace to co-develop high-voltage SiC power modules for industrial, aerospace, and defence markets. The partnership signals that a major aerospace customer views Wolfspeed's SiC technology as mission-critical, a meaningful commercial validation at a time when investor confidence in the business is rebuilding. The broader AI-driven semiconductor rally, which lifted the Philadelphia Semiconductor Index to record highs last week, provided the macro tailwind amplifying the company-specific catalyst.

SiC Demand Recovery as the Investment Thesis

Wolfspeed's core investment case rests on the secular growth of SiC adoption across EV powertrains, industrial power conversion, and now aerospace and defence applications. The GE Aerospace MoU extends the company's end-market narrative beyond EV, where near-term demand softness has weighed on revenue, into higher-margin, longer-cycle defence and industrial applications. The combination of a leaner post-reorganisation cost structure and a broadening customer base is the thesis investors are repricing.

Valuation and Risk Considerations

WOLF reports a negative EPS of $13.28 and trades without a conventional P/E ratio. The 52-week range of $8.05 to $80.82 reflects the severity of prior price swings. Gross margin remains negative, with sequential improvement guided but not yet confirmed, and analyst price targets remain well below current trading levels. Key risks include the pace of gross margin recovery, EV demand softness, and execution on facility consolidation.

Conclusion

Wolfspeed's pre-market advance reflects GE Aerospace deal momentum and sector tailwinds landing on a business with a materially cleaner financial structure than a year ago, creating a more investable profile for the SiC demand recovery thesis.

FAQs

Q: Why is WOLF up 3.81% pre-market June 22? A: Wolfspeed is extending momentum from a June 9 GE Aerospace MoU to co-develop high-voltage SiC power modules, amplified by the broad AI-driven semiconductor sector rally lifting defence and industrial names.

Q: What does Wolfspeed make? A: Wolfspeed manufactures SiC wafers, power devices, MOSFETs, and power modules for EV, renewable energy, 5G, aerospace, and defence applications, with a 33.7% SiC market share in 2024.

Q: Is WOLF profitable? A: Not yet. Wolfspeed reports a negative EPS of $13.28 with negative gross margins, though sequential gross margin improvement is guided for fiscal Q3 as operational actions take effect.