As Wolfspeed Emerges From Bankruptcy, Should You Buy, Hold, or Sell WOLF Stock?

Core Viewpoint - Wolfspeed has successfully exited Chapter 11 bankruptcy, significantly improving its financial position and preparing to capitalize on growing market demands in AI and EV sectors [1][4]. Financial Restructuring - The company reduced approximately 70% of its debt and lowered annual cash interest expenses by about 60% [1][4]. - Major debt maturities have been extended to 2030, providing the company with operational flexibility [4]. Market Reaction - Following the bankruptcy exit, Wolfspeed's shares have increased over 265% year-to-date in 2025, reflecting renewed investor confidence [2]. - The market capitalization stands at approximately $630 million [2]. Shareholder Changes - The restructuring involved the cancellation of old common shares and the issuance of 25.8 million new shares, with legacy equity holders receiving a small portion [5]. - The stock experienced significant volatility post-exit, with an adjusted one-day drop of 85% followed by a recovery to a high of $34.28, representing an 1800% gain from an intraday low [5]. Operational Performance - For Q4 FY2025, consolidated revenue was reported at $197 million, a slight decrease from $201 million the previous year [6]. - The net loss for the quarter increased to $669 million, or $0.85 per share, compared to a loss of $285 million, or $0.84 per share, in Q3 [6]. - Gross margins have significantly declined, falling from 13% in FY2024 to just 2% in FY2025 [6].