WOLF - Why Wolfspeed Wasn't Keeping Up With the Pack and Falling 18% Today
Shares of silicon carbide (SiC) wafer and chip system manufacturer Wolfspeed (NYSE: WOLF) were falling over 18% today as of 11:15 a.m. ET. Blame the company's fiscal 2023 first-quarter earnings report. Interestingly, revenue and earnings narrowly beat expectations, but shares tanked anyway. That's due to guidance for the next quarter.
But first, those Q1 numbers (for the three-month period ended Sept. 25, 2022). Wolfspeed revenue was up 53% year over year to $241 million. Net loss improved to $26.2 million, compared to a net loss of $70.1 million in the same period last year.
There's a tremendous amount of optimism surrounding Wolfspeed (the company formerly known as Cree) as it transitions to a SiC chipmaking pure play . SiC is a more expensive semiconductor material than traditional silicon, but it holds up better under the high voltage and high temperatures that electric vehicles (EVs) subject semiconductors to. With virtually every automaker out there scrambling to electrify its lineup , SiC demand is through the roof.
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Why Wolfspeed Wasn't Keeping Up With the Pack and Falling 18% Today