Core Insights - Wolfspeed has emerged from Chapter 11 bankruptcy protection after significantly reducing its total debt by approximately 70% and extending debt maturities to 2030, which has led to a 60% reduction in annual cash interest expenses [2][10] - The company's stock has increased about 14% since its reopening price of $18 on September 29, indicating a gradual stabilization of its business [3] - Wolfspeed, previously known as Cree, has transitioned to focus solely on silicon carbide (SiC) and gallium nitride (GaN) chips, which are essential for various applications including electric vehicles and industrial systems [3][4] Financial Performance - Wolfspeed's revenue surged by 42% in fiscal 2022 and 24% in fiscal 2023, driven by growth in the electric vehicle, industrial, and renewable energy markets [7] - However, revenue fell by 12% in fiscal 2024 and further declined by 6% to $758 million in fiscal 2025 due to macroeconomic challenges [7][8] - The adjusted gross margin plummeted from 36% in fiscal 2022 to just 2% in fiscal 2025, while annual net losses widened from $201 million to $1.6 billion during the same period [8] Market Position and Strategy - Wolfspeed operates as an integrated device manufacturer (IDM), producing its own chips at first-party foundries, with a focus on expanding its 200mm manufacturing facilities [6] - The company is constructing a second 200mm fab in Siler City, North Carolina, while phasing out older 150mm chip production [6] - Analysts project a compound annual growth rate of 8% for Wolfspeed's revenue from fiscal 2025 to fiscal 2027, despite not expecting stable profits [11] Investment Considerations - With a market cap of $531 million and trading at 0.7 times this year's sales, Wolfspeed's valuation is considered attractive, especially given the high short interest of 62% as of November 14 [12] - The potential for a short squeeze exists if positive news emerges regarding the SiC and GaN markets, making Wolfspeed a potentially good long-term investment for those bullish on these sectors [12]