If You'd Invested $10,000 in Wolfspeed 3 Years Ago, Here's How Much You'd Have Today

Core Insights - Wolfspeed, previously known as Cree, transitioned from LED manufacturing to focus on gallium nitride (GaN) and silicon carbide (SiC) semiconductors, aiming to capitalize on the electric vehicle market [2][3] - The company has faced significant challenges, including high cash burn and failure to meet growth expectations in the electric vehicle chip sector, leading to a substantial decline in stock value [3][4] - An investment of $10,000 in Wolfspeed stock made at the end of November 2022 would have decreased to approximately $2,071, reflecting a loss of 77.3% over three years, while the S&P 500 gained 73.4% during the same period [7] Company Performance - Wolfspeed's market capitalization is currently $481 million, with a current stock price of $18.56, down 6.55% on the day [4] - The stock has experienced a significant decline from its 52-week high of $36.60, with a gross margin reported at -1941.56% [4] - The company entered Chapter 11 bankruptcy protection in June 2025, completing financial restructuring three months later, which contributed to the stock's decline [7] Industry Context - The electric vehicle market, which Wolfspeed aimed to serve, has seen a slowdown, impacting the demand for GaN and SiC chips [9] - Increased competition in the semiconductor space, with more manufacturers entering the GaN and SiC markets, poses additional challenges for Wolfspeed [9]