Wolfspeed stock forecast updated Wolfspeed stock forecast data

Updated Wolfspeed stock forecast data reflects heightened investor interest post-announcement of multi-year supply agreements with major EV OEMs, strengthening order book stability through Wolfspeed WOLF shares have fallen 22% in the past month, underperforming the broader Zacks Computer and Technology sector’s growth of 3.5% and the Zacks Semiconductor – Discretes industry’s decline of 10%. The underperformance can be attributed to its dismal financial performance in the first quarter of fiscal 2025, as reported on Nov. 6. Wolfspeed recorded revenues of $194.7 million, declining 1.4% from the prior-year period and missing the Zacks Consensus Estimate of $200 million. The non-GAAP gross margin dropped to 3.4%, led by a lower revenue mix from the industrial and energy sectors, along with reduced product margins from the Durham Fab. Additionally, the company is facing rising restructuring costs due to its facility closures and consolidation efforts as it transitions to a 200mm wafer device fabrication technology from the current 150mm. WOLF’s heavy reliance on foreign sales and growing competition from China in the silicon carbide market are putting pressure on the company. Two and a half years later, I started to wonder why I was holding on to Wolfspeed's stock. The post-pandemic rebound looked complete, and I wasn't excited about the company's growth prospects anymore. So I closed that position at a 156% gain -- well ahead of the S&P 500 's (SNPINDEX: ^GSPC) 42% rise over the same period. The semiconductor market outlook embedded in Wolfspeed stock forecast reveals potential pricing power in silicon carbide amid tightening supply, supporting premium margins if global demand remains elevated.