Wolfspeed Faces Bankruptcy Amid Sales Decline and Debt

Introduction

Wolfspeed Inc. (NYSE: WOLF), also known in Korean as “움프스피드,” develops and manufactures wide-bandgap semiconductors, focusing on silicon carbide (SiC) and gallium nitride (GaN) materials and devices for power and radio-frequency applications. As of July 3, 2025, the stock closed at $1.1650, which reflects a percentage increase of 50.69% on a trading volume of 70,789,477 shares.

Corporate Structure

Founded in 1987 as Cree Research and rebranded to Wolfspeed in October 2021, the company is headquartered in Durham, North Carolina. Wolfspeed employs between 1,001 and 5,000 people across its U.S. and international facilities. The firm holds over 6,000 patents and operates end-to-end SiC fabrication corridors, including its Marcy, New York facility that opened in April 2022.

Semiconductors by Igor Omilaev

Recent Developments and News

On May 20, 2025, reports indicated that Wolfspeed was preparing to file for Chapter 11 bankruptcy after reporting lower-than-expected annual sales. On May 29, 2025, the company hosted a technical webinar on transitioning from silicon to silicon carbide in power system designs. During the PCIM conference in May 2025, Wolfspeed demonstrated its Generation 4 SiC technology spanning 650 V to 3.3 kV. On July 1, 2025, the company filed Form 8-K (Items 1.03, 2.04, 7.01, 9.01) with the U.S. Securities and Exchange Commission. The following day, BlackRock disclosed beneficial ownership of 8,221,767 shares, representing 5.3% of the outstanding common stock.

Financial and Strategic Analysis

According to Yahoo Finance data as of June 18, 2025:

• Market capitalization stood at $135.9 million; enterprise value was $3.23 billion.
• Price/sales ratio: 0.15; price/book ratio: 0.64; EV/revenue multiple: 4.25.
• Trailing-twelve-month revenue: $761.3 million; net loss: $1.11 billion; profit margin: –146.43%.
• Return on assets: –4.17%; return on equity: –180.49%; diluted EPS: –8.26.
• Total cash: $1.4 billion; debt/equity ratio: 3,136.81%; levered free cash flow: –$2.69 billion.
• Analyst one-year target estimate: $3.83; next earnings window: August 19–25, 2025.

A financial research firm assigned Wolfspeed an Investment Rating of SELL with a target price of $1.00, alongside subratings of High for Industry, Medium for Management and Growth, and Low for Safety, Financial Strength, and Value.

Market Position and Industry Context

Wolfspeed is a developer of SiC and GaN semiconductor technology, supplying components for electric vehicles, renewable-energy inverters, power supplies, and wireless systems. The company operates the first U.S. silicon carbide corridor with end-to-end production and competes with major semiconductor manufacturers amid the transition from silicon to SiC. In October 2024, the U.S. Department of Energy pledged up to $750 million to support Wolfspeed’s wafer fabs in North Carolina and New York. A proposed European SiC plant was postponed to mid-2025 in June 2024 and subsequently placed on indefinite hold in October 2024.

tl;dr

Wolfspeed’s share price closed at $1.1650 (+50.69%) on July 3, 2025. The company faced potential Chapter 11 preparation after sales did not meet forecasts. BlackRock held 5.3% of shares as of July 2, 2025. Trailing-twelve-month revenue was $761.3 million against a $1.11 billion net loss; cash on hand was $1.4 billion with a significant debt-to-equity ratio. Analysts’ one-year target is $3.83; upcoming earnings are expected between August 19 and 25, 2025.