Wolfspeed Inc. (NYSE:WOLF) shares are trending on Tuesday night.Shares of the North Carolina-based semiconductor company fell 0.37% in after-hours trading to $19.05 on Tuesday.According to Benzinga Pro data, the stock closed regular trading up 7.78% at $19.12.Leadership Hire Targets EMEA GrowthOn Tuesday, Wolfspeed announced the appointment of Stefan Steyerl as vice president of sales for the Europe, Middle East and Africa region, effective March 1.Earlier, he held senior leadership roles at multinational s ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $801 million, slightly above the midpoint of guidance and a 1.3% increase from the previous quarter [4][18] - Gross profit was $157 million, resulting in a gross margin of 19.6%, which is modestly above both the midpoint of guidance and the third quarter [18][19] - GAAP earnings per share was $0.01, compared to a loss of $0.06 in the third quarter and a loss of $0.49 in the fourth quarter of 2024 [21] Business Line Data and Key Metrics Changes - Automotive revenue decreased by 3.4% compared to the third quarter, while industrial power revenue increased by 3.2% [9][10] - Revenue in the healthcare segment was flat compared to the third quarter, with Europe experiencing its strongest quarter in three years [12][13] - The "other" category saw a revenue growth of 10.6% due to increased production for AI power management applications [13] Market Data and Key Metrics Changes - Revenue growth for the quarter came entirely from Asia, which grew by 3.6%, while the Americas and Europe were essentially flat due to year-end holiday slowdowns [16] - The book-to-bill ratio was 1.2, up from 1.15 at the end of October, indicating strong order growth across all regions and channels [7][8] - Backlog at quarter end was $1.3 billion, equating to approximately 4.9 months of sales [8] Company Strategy and Development Direction - The company is executing a five-year strategic plan aimed at driving faster revenue growth, raising profitability, and enhancing capital returns [30] - Significant investments are being made in capacity expansion, particularly at the 12-inch fab, with expected CapEx between $400 million and $440 million for 2026 [30][31] - The company is focused on maintaining capacity readiness, growing share at existing customers, and attracting new customers [34] Management's Comments on Operating Environment and Future Outlook - Management expects mid to high single-digit growth across key market segments, including industrial power, automotive, aerospace defense, AI, and healthcare [38] - The company is optimistic about the demand for power requirements in its five growth segments and anticipates revenue increases each quarter in 2026 [34] - Management highlighted the importance of customer engagement and the positive impacts of Vishay 3.0 on revenue generation [5][34] Other Important Information - The company generated $149 million in operating cash for the fourth quarter, including $62 million from the securitization of accounts receivable [23] - Total CapEx for the quarter was $95 million, with $75 million designated for capacity expansion projects [24] - The company plans to maintain its dividend policy, returning at least 70% of free cash flow to stockholders, despite expecting negative free cash flow due to capacity expansion plans [28][62] Q&A Session Summary Question: What is the current view on industry growth expectations? - Management maintains a view of mid to high single-digit growth across various market segments, with specific expectations for automotive being flat to mid-single digit due to electronic content [38] Question: How are gross margins expected to trend? - Management indicated that annual contractual negotiations resulted in less historical ASP decline, and they have started increasing prices due to higher material costs [40][41] Question: What is the outlook for automotive demand? - Management noted gains in share through negotiations and highlighted four key technology developments driving design activity in the automotive sector [46][52] Question: Can you elaborate on CapEx and OpEx plans? - Management expects CapEx to be in the range of $400 million to $440 million, with significant investments in the 12-inch fab and other targeted projects [56][60] Question: Is M&A being considered? - Management stated that M&A is always on the table, with a focus on both passive and active segments, but no specific plans were disclosed at this time [62][63]

Group 1 - Aehr Test Systems' shares fell by 12.1% in December as investors moved away from riskier stocks in the AI sector [1] - The company's traditional market is wafer-level burn-in test solutions for the silicon carbide market, primarily driven by electric vehicle development [2] - Revenue from the electric vehicle sector has declined due to disappointing sales, impacting overall company revenue [4] Group 2 - Aehr is expanding into new markets for WLBI test systems, targeting customers developing AI processors, including a major hyperscaler [3] - Despite growth in AI-related orders, the decline in EV-related revenue has not been offset, leading to a revenue drop from $26.6 million to $20.9 million in the first half of the year [4] - The company reported a non-GAAP loss of $0.4 million in the first six months, raising concerns among investors [4][5] Group 3 - Aehr's backlog increased from $11.8 million to $18.3 million, with expected second-half bookings between $60 million and $80 million, indicating potential for a strong fiscal 2027 [7] - The company is experiencing impressive growth in AI-related orders, suggesting a positive outlook for future revenue [8]

Financial Data and Key Metrics Changes - The company reported fourth-quarter revenue of $19.8 million, exceeding guidance of $17-$19 million, driven by strong demand for AI-related equipment [3][4] - Adjusted EBITDA was $2.6 million, approximately 13% of revenue, surpassing mid-single-digit expectations [3] - GAAP net income for the fourth quarter was $1.1 million, or $0.07 per share, compared to a net income of $0.1 million, or $0.01 per share in the previous quarter [13] Business Line Data and Key Metrics Changes - Revenue from thermal processing solutions saw a significant increase, with AI infrastructure equipment accounting for over 30% of this segment's revenue, up from 25% in the prior quarter [4][5] - The semiconductor fabrication solutions segment experienced weak demand for front-end equipment, but performance slightly exceeded expectations [6] - The revenue mix consisted of approximately 60% from capital equipment and 40% from recurring revenues, indicating a strategic focus on higher-margin recurring revenue streams [5][11] Market Data and Key Metrics Changes - Demand for AI-related equipment remains strong, with no signs of slowdown in this area [5] - The company noted that the automotive market remains soft, particularly among Western OEMs, despite better sales in China [40] Company Strategy and Development Direction - The company is focused on expanding its higher-margin recurring revenue streams while capitalizing on AI infrastructure opportunities [5][8] - Cost reduction initiatives have resulted in $13 million of annualized savings, improving the company's operating model and cost structure [7][8] - A share repurchase program of up to $5 million has been authorized, reflecting confidence in the company's financial position and growth prospects [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strength in AI-related equipment revenue, supported by fourth-quarter bookings [5][14] - The company anticipates revenue in the range of $18-$20 million for the first quarter of fiscal 2026, with solid operating leverage expected [14][15] - Management acknowledged the cyclical nature of the semiconductor equipment industry and the potential impact of market demand fluctuations [15] Other Important Information - The CFO announced resignation effective December 29, 2025, with plans to assist in the transition [16][17] - The company is actively searching for a new CFO [33] Q&A Session Summary Question: Visibility with AI customers and backlog trends - Management noted strong demand and visibility, with most equipment being booked and shipped within the same quarter [21][22] Question: Sublet savings from underutilized facilities - Expected annualized savings from subletting underutilized facilities are estimated to be between $700,000 and $1 million [24] Question: New applications for silicon carbide - Management indicated that potential growth in silicon carbide applications is more likely to translate into consumables rather than direct equipment sales [26][27] Question: Opportunities in the service area - The company is focusing on high-value niche opportunities in medical and defense sectors, leveraging foundry services for recurring revenue [31][32] Question: Update on CFO search - The search for a new CFO has just begun, with updates to be provided as progress is made [33] Question: Margin profile of existing backlog - The backlog has been cleaned up to consist of high-quality, high-margin products [38] Question: Automotive market performance - The company’s exposure is primarily to Western OEMs, which explains the softness in the automotive sector [40]

Core Insights - Coherent Corp. has achieved a significant milestone with its next-generation 300mm silicon carbide (SiC) platform aimed at enhancing thermal efficiency in AI datacenter infrastructure [1][2] Group 1: Technology Development - The new 300mm SiC solution is designed to handle increasing thermal loads, addressing the performance and scalability requirements of modern datacenters [2] - Transitioning to larger diameter SiC wafers is expected to yield substantial improvements in energy efficiency and thermal performance, crucial for high power density and faster switching applications [2][4] Group 2: Applications and Innovations - While primarily focused on datacenter thermal management, Coherent is also advancing SiC technology for augmented reality (AR) and virtual reality (VR) devices, as well as power electronics [3][4] - The conductive SiC substrates offer low resistivity, low defect density, and high homogeneity, which enhance energy efficiency and thermal performance in next-generation datacenter systems [4] Group 3: Market Position - The 300mm platform strengthens Coherent's leadership in wide-bandgap semiconductor materials, facilitating innovation across various sectors including datacenters, optics, and power applications [5]

Core Insights - On Semiconductor (ON) is experiencing significant growth driven by strategic acquisitions and increasing demand for AI data center solutions, with AI data center revenues more than doubling year over year in Q2 2025 [1][10] - The acquisition of Aura Semiconductor's Vcore power technologies and Qorvo's Silicon Carbide Junction Field Effect Transistor business enhances ON's power management portfolio and positions the company to meet the power requirements of AI infrastructure [2][4][10] Acquisitions and Technology - ON's acquisition of Aura Semiconductor strengthens its capabilities in providing comprehensive power solutions for AI data centers, leveraging advanced silicon carbide (SiC) technology [2][10] - The $115 million acquisition of Qorvo's SiC JFET business enhances ON's EliteSiC power portfolio, improving energy efficiency in AI data centers and supporting electric vehicle (EV) applications [4][10] Partnerships and Collaborations - ON's partnerships with major companies like NVIDIA, Schaeffler, and BorgWarner are pivotal for expanding its market reach and enhancing its silicon carbide technology offerings [5][6][8][10] - The collaboration with NVIDIA focuses on advancing 800 VDC power architectures for next-generation AI data centers, positioning both companies at the forefront of high-performance power delivery [6][10] - The expanded collaboration with Schaeffler involves the use of ON's EliteSiC MOSFETs in traction inverters for advanced plug-in hybrid electric vehicles [7][10] Financial Outlook - For Q3 2025, ON expects revenues to be between $1.465 billion and $1.565 billion, reflecting the positive impact of its expanding portfolio and strong partnerships [9][10] - Non-GAAP earnings are projected to be between 54 cents per share and 64 cents per share, indicating robust financial performance [11]

Financial Data and Key Metrics Changes - The company reported revenue of $195 million and non-GAAP earnings per diluted share of $1.13, both exceeding expectations [7][22] - Bookings in the second quarter were $96 million, reflecting a book-to-bill ratio of 0.8 times, slightly down sequentially [7][25] - GAAP gross margins were 44.9%, exceeding the outlook of 41.7%, while non-GAAP gross margins were 45.2% compared to an expected 42% [25] - The company generated approximately $38 million in free cash flow in the second quarter [27] Business Line Data and Key Metrics Changes - System revenue was $134 million, and CS&I revenue was $61 million, both slightly above expectations [22] - Shipments in the power business for silicon carbide applications were relatively flat quarter-over-quarter, with continued firm demand in China for 150mm and 200mm applications [10][12] - Revenue from other power applications grew sequentially, primarily due to growth in China [15] Market Data and Key Metrics Changes - China accounted for 65% of total shipped system sales, up from 37% in the prior quarter [22] - The U.S. contributed 19% to system sales, while Korea declined to 8% [22] - The company anticipates second-half revenue in China to be similar to the first half due to customers digesting previous investments [22] Company Strategy and Development Direction - The company is focusing on innovation and deep engagement with customers on their technology roadmaps [19] - The strategy includes a shift towards advanced logic and memory applications, with a focus on next-generation implant applications [17][18] - The company is managing costs prudently while ensuring resources for growth, reflected in a first-half adjusted EBITDA margin of approximately 20% [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainty and cyclical digestion in 2025 but expressed confidence in the company's ability to navigate the downturn [31] - The company expects modest revenue improvement in 2025, driven by pockets of demand in the power market [14] - Management remains optimistic about long-term growth opportunities, particularly in silicon carbide and advanced logic markets [12][14] Other Important Information - The company repurchased approximately $45 million in shares during the second quarter, with $168 million remaining in share repurchase authorization [28][66] - The company is monitoring the tariff environment and believes it is well-positioned to respond to changes [29] Q&A Session Summary Question: Initial indications of wafer start growth in memory market for 2026 - Management indicated that while they are not forecasting for 2026 yet, they expect new capacity to come online in 2025 and early 2026, which could lead to increased demand for implanters [34][35] Question: Outlook for the general mature marketplace - Management believes revenue for 2025 will be slightly up, but not due to general mature markets, which are currently in a digestion period [36] Question: Silicon carbide customers using current period for R&D - Management confirmed that customers are indeed acquiring tools for R&D, which may lead to increased demand for volume production in the future [39][40] Question: Drivers behind strong performance in CS&I - The strong performance in CS&I was attributed to upgrades and related activities rather than tariff pull-ins [62] Question: State of competition in China - Management noted that competition in China is still immature, with new companies struggling to meet the high standards required for advanced tools [72][74] Question: Backlog composition and timing - The backlog reported consists solely of systems-related orders, with projected shipments extending into 2026 [75]

Financial Data and Key Metrics Changes - The company reported revenue of $195 million and non-GAAP earnings per diluted share of $1.13, both exceeding expectations [6][22] - Bookings in the second quarter were $96 million, reflecting a book-to-bill ratio of 0.8 times, slightly down sequentially [6][25] - GAAP gross margins were 44.9%, exceeding the outlook of 41.7%, while non-GAAP gross margins were 45.2% compared to an expected 42% [25][26] - The company generated approximately $38 million in free cash flow in the second quarter [28] Business Line Data and Key Metrics Changes - System revenue was $134 million, and CS and I revenue was $61 million, both slightly above expectations [22] - Shipments in the power business remained flat quarter-over-quarter, with a focus on silicon carbide applications [8][14] - Revenue from other power applications grew sequentially, primarily due to growth in China [14] - Advanced logic remains an underpenetrated market, with a forward order received in the second quarter [15] Market Data and Key Metrics Changes - China accounted for 65% of total shipped system sales, up from 37% in the prior quarter [22] - The U.S. contributed 19% to system sales, while Korea declined to 8% [22] - The company anticipates that second-half revenue in China will be similar to the first half due to customers digesting previous investments [22] Company Strategy and Development Direction - The company is focused on innovation and deep engagement with customers on their technology roadmaps [19] - CS and I revenue made up approximately 30% of total revenue, reflecting the strength of the installed base [20] - The company is managing its cost structure prudently while ensuring resources for growth [21] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty and cyclical digestion in 2025 but expressed confidence in the company's ability to navigate these challenges [19][32] - The company expects modest improvement in revenue in 2025, driven by pockets of demand [13] - The outlook for the third quarter includes expected revenue of approximately $200 million and non-GAAP diluted earnings per share of about $1 [30] Other Important Information - The company repurchased approximately $45 million in shares during the second quarter, with $168 million remaining in share repurchase authorization [29][68] - The company continues to monitor the tariff environment and believes it is well-positioned to respond to changes [30] Q&A Session Summary Question: Initial indications of wafer start growth in memory market for 2026 - Management indicated that while they are not forecasting for 2026 yet, they expect to see new capacity come online in 2025 and early 2026 [36][37] Question: Outlook for the general mature marketplace - Management believes revenue for 2025 will be slightly up, but not due to general mature, which is currently in a digestion period [38] Question: Silicon carbide customers using current period for R&D - Management confirmed that customers are indeed acquiring tools for R&D, which may lead to increased demand for volume production in the future [41][42] Question: Drivers behind strong performance in CS and I - Management attributed the strong performance to upgrades and related activities rather than tariff pull-ins [64][66] Question: Competition in China - Management noted that competition in China is still immature and closely monitored, with no significant threats outside of China [72][75] Question: Backlog composition and timing - The backlog consists solely of systems-related orders and is expected to carry into 2026 [77] Question: Reconciliation of strong China EV sales with flat sales projection - Management explained that while EV sales are strong, the capacity built in 2024 is leading to a focus on productivity and efficiency rather than new capacity additions [82][84]

Core Insights - Aehr Test Systems' shares surged over 20% following new orders for its AI processor testing solutions [1] - The recent orders come shortly after a cautious earnings report, indicating quicker-than-expected resolution of order delays [2] - The identity of the "world-leading hyperscaler" customer remains speculative, with potential candidates including Google and Microsoft [3] Company Developments - Aehr's CEO expressed cautious optimism regarding financial guidance for 2026, citing tariff-related uncertainties affecting order placements [2] - The new orders represent a significant increase, more than doubling the number of production systems with the identified customer [3] - Aehr is diversifying away from the struggling silicon carbide wafer-level burn-in test solutions market, which is primarily driven by electric vehicle demand [5] Market Outlook - The shift towards AI-driven markets is expected to enhance Aehr's long-term growth prospects [6] - Despite current challenges in the EV sector, there is an anticipation of a rebound in investment, positioning Aehr favorably for future growth [6]

Core Insights - Aehr Test Systems experienced significant stock volatility in 2025, with a 22.2% decline in the first half, following a 56% drop in the first quarter and a subsequent 77.4% rise in the last quarter of the half-year [1][2]. Financial Performance - The company's financial year ends on May 30, and for the fiscal year 2024, the silicon carbide (SiC) wafer-level burn-in (WLBI) market accounted for 90% of its sales [2]. - In fiscal year 2025, SiC WLBI revenue dropped to less than 40% of total revenue, indicating a significant shift in the company's revenue sources [4]. Market Dynamics - ON Semiconductor, a key customer, has faced a sales slowdown, reflecting a broader downturn in the SiC market, particularly in the electric vehicle (EV) sector, influenced by high interest rates and a correction from previous EV spending booms [3]. - The weakening EV market negatively impacted Aehr's growth prospects in the SiC WLBI market during the first three months of fiscal 2025 [4]. Strategic Developments - A turnaround in Aehr's stock occurred after the third-quarter earnings report in April, where management announced plans to expand into new markets, projecting that 35% of revenue would come from the artificial intelligence (AI) processor burn-in market [5]. - The company has secured four customers contributing over 10% of revenue, with three of these being in new markets, including gallium nitride (GaN) semiconductor supply for the automotive sector [5]. Customer Base and Future Outlook - Aehr has identified a major hyperscaler as a first production AI customer in the packaged part burn-in (PPBI) market, with notable customers including Microsoft, Google, Nvidia, ON Semiconductor, and Infineon [7]. - Management believes that AI end markets could be 3 to 5 times larger than traditional SiC markets, which is driving optimism and strength in the current stock price [8].