WOLF - Wolfspeed: Still Full Speed Ahead

2024-02-15 18:05:45 ET

Summary

• Wolfspeed, Inc. remains bullish on the long-term demand for their silicon carbide products despite the recent pause in the EV revolution.
• The company signed another massive $2.1 billion in design-in wins leading to a cumulative total of $22.4 billion.
• Wolfspeed stock trades at only 2x FY26 sales targets and a fraction of the design-in wins.

The electric vehicle ("EV") revolution has taken a pause the last few months, but Wolfspeed, Inc. ( WOLF ) remains full speed ahead to play the large market opportunity ahead in the eventual conversion to EVs. The vertically integrated silicon carbide stock trades at multi-year lows due to the fears over slumping EV demand, but the company sees no change in the long-term demand picture. My investment thesis remains ultra Bullish on the stock due to the strong long-term demand for their products....

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