WOLF - Why Wolfspeed Sank Today
2024-05-02 16:12:08 ET
Shares of silicon carbide chipmaker Wolfspeed (NYSE: WOLF) were sinking on Thursday, down over 20% at one point, before recovering to just a 10.2% decline.
Wolfspeed has embarked on an ambitious massive buildout of its 200mm silicon carbide (SiC) chipmaking and SiC materials plants. The reason is that silicon carbide is thought to be crucial for EV range extension and electrification applications generally. However, SiC is a difficult material to manufacture on 200mm wafers, which offer cost savings over 150mm wafers.
Amid the well-publicized EV slowdown, Wolfspeed's revenue disappointed, and ongoing losses continue to try investor patience.
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Why Wolfspeed Sank Today