Wolfspeed reported its third quarter 2025 figures.
Although it surpassed earnings expectations, the company's 2026 sales guidance is incredible.
The company is undertaking a lot of debt and faces multiple macro headwinds.
Our 10 Better Stocks than Wolfspeed ›
Shares Wolfspeed (NYSE: Wolf) Crashed on Friday. As of 3:32 PM ET, chipmaker stocks fell 25.8% and 29.3% earlier in the day. It's because of the sharp drop S&P 500 (snpindex: ^gspc) and Nasdaq Composite Materials (NasdaqIndex: ^i tocie) Almost flat.
The company reported a bit positive third-quarter results, but released a 2026 revenue forecast, which is about the same as Wall Street expectations.
Wolfspeed reported revenue of $185.4 million in 2025, a slightly estimated $185.9 million. The company did manage to beat Wall Street’s revenue target, but it is expected to lose $0.72 per share at a net loss of $0.82 per share.
While its third-quarter results show some positive signs, including the smallest loss of the year, the main story is the company’s extraordinary guidance for the next fiscal year. Wolfspeed now expects sales of $850 million in 2026 and is expected to be $958.7 million.
The company noted that in the electric vehicle market, its silicon carbide chips are adopted at a lower speed than expected silicon carbide chips (than its silicon analogue). The downstream impact of President Trump's tariffs has had a negative impact on the U.S. chip maker.
There is also significant uncertainty about the opportunity to acquire capital, which is crucial to the company with high leverage. Under the Biden Administration's Chip Act, the company will receive $750 million in federal funding in North Carolina, but the Trump administration calls on lawmakers to repeal federal funding, doubting whether Wolf Speed will receive the money.
The company does have interesting technology, but I'm staying away from Wolfspeed stock due to all the issues I'm currently facing.
Before purchasing WolfSpeed, consider the following:
this Motley Fool Stock Advisor The analyst team just confirmed what they think is 10 Best Stocks Investors buy now…and Wolfspeed is not one of them. Ten stocks with layoffs could generate monster returns in the coming years.
When to consider Netflix On this list on December 17, 2004...If you invested $1,000 when you suggested, You will have $617,181! * Or when Nvidia This list was listed on April 15, 2005...If you invested $1,000 when you suggested, You will have $719,371! *
Now, it's worth noting Stock ConsultantThe overall average return is 909% - Compared to market impulses 163% For the S&P 500 index. Don't miss the latest top ten list, available when you join Stock Consultant.
View 10 stocks »