RNECY - Wolfspeed Lands Renewable Energy Chip Deals -- but Are Investors Paying Attention to the Wrong Stock?
2023-07-13 06:50:00 ET
As electric vehicles (EVs) and renewable energy pick up momentum, the world has become aware of a new semiconductor material: silicon carbide (SiC). SiC is more resistant to heat and can handle high voltages, making it ideal for the power management chips needed for these applications.
Wolfspeed (NYSE: WOLF) , the company formerly known as Cree , was quick to pick up on the coming wave of demand for SiC and has built a couple of factories fully dedicated to producing SiC wafers (the discs that eventually get chopped up into chips) and devices.
But launching such ambitious manufacturing plans is expensive and takes years to reach profitable scale. Investor enthusiasm gradually moderated for Wolfspeed until recently, as the company announced a couple of funding deals -- including with leading Japanese chipmaker Renesas (OTC: RNECY) . But is Wolfspeed really the best buy of these two companies?
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Wolfspeed Lands Renewable Energy Chip Deals -- but Are Investors Paying Attention to the Wrong Stock?