Is There a Future for Wolfspeed?

Core Viewpoint - Wolfspeed has undergone a significant turnaround following a Chapter 11 bankruptcy restructuring, which eliminated 70% of its debt and resulted in a share price increase of over 2,000%. However, questions remain about its long-term value versus being a meme stock [1]. Financial Performance - Wolfspeed reported $758 million in revenue for its 2025 fiscal year, reflecting a 6% year-over-year decrease. The cost of revenue increased by 20% to $879 million, leading to an overall loss of $1.6 billion [4]. - The restructuring replaced all legacy shares with 1.3 million new shares for existing shareholders, indicating a significant dilution of ownership [3]. Market Position - Currently, Wolfspeed is trading at approximately 1 times sales, which is considered low for a semiconductor company. The company produces semiconductors capable of handling higher voltages and temperatures, providing a competitive edge over traditional options [5]. Investment Considerations - Analysts from The Motley Fool Stock Advisor have identified ten stocks they believe are better investment opportunities than Wolfspeed, suggesting caution for potential investors [6][7].