Wolfspeed, a leading silicon carbide semiconductor manufacturer, is skyrocketing in value after securing $2.5 billion in funding, a combination of government grants and private investments. The funding will fuel the company’s ambitious plan to expand US production of silicon carbide chips, critical for clean energy and advanced technologies.
Wolfspeed (WOLF) reported a wider-than-expected loss in its fourth-quarter earnings, with revenues lagging year-over-year. Despite this, the company expects to see revenue growth in the first quarter of fiscal 2025. Investors have recently witnessed a downward trend in fresh estimates for Wolfspeed, leading to a Zacks Rank of #3 (Hold).
Wolfspeed’s stock gained 8.2% in pre-market trading despite the company reporting a quarterly loss that missed analyst expectations. Several other stocks are also seeing significant moves in pre-market trading, with some gaining over 100% and others dropping over 30%.
Several companies are expected to report their quarterly earnings today, including BJ’s Wholesale Club, Wolfspeed, Williams-Sonoma, Zoom Video Communications, and Intuit. Find out how their recent performance might impact their stock prices.
Wolfspeed, a leading semiconductor manufacturer, reported a loss for the fourth quarter, falling short of analyst expectations. However, the company highlighted progress in its new 200-millimeter fab, which is already showing positive results and leading to a shift in device fabrication away from its Durham facility. Wolfspeed also provided an outlook for the first quarter, predicting continued losses, although revenue is expected to remain above $185 million.
Activist investor Jana Partners has pushed Wolfspeed, a silicon carbide manufacturer, to consider strategic alternatives, including a potential sale, in order to enhance shareholder value. This move follows a significant decline in Wolfspeed’s stock performance over the past year. Jana has emphasized the need for the company to explore all avenues to improve its performance and conduct a comprehensive review of alternatives.
Activist investor Jana Partners has taken a significant position in semiconductor firm Wolfspeed and is calling for major changes to address declining shareholder value. Jana believes Wolfspeed’s strong manufacturing capabilities and its role in supporting the energy transition give it intrinsic value, but its performance has been hindered by missteps in capital allocation, execution, and strategy.
