Wolfspeed Inc. (WOLF) Shares Dip in Early Trading: A Look at Recent Events

In today’s premarket trading session, Wolfspeed Inc. (WOLF) exhibited a notable downturn, as observed in its key performance metrics. The company’s stock price stood at $30.50, marking a decline of $2.05, or a substantial 6.30% decrease from its previous close.

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This downward movement was accompanied by a trading volume of approximately 51,200 shares, indicating a significant level of investor activity and interest in the stock during the early trading hours. The substantial change in both price and percentage terms underscores a potentially impactful shift in investor sentiment or market conditions affecting Wolfspeed Inc.

Recent Happenings

Wolfspeed Inc. has just released its latest earnings for the quarter, and the figures are quite revealing. The company’s consolidated revenue climbed to $208.4 million, up from $173.8 million when compared to the same period last year. A significant highlight was the Mohawk Valley Fab, which saw its revenue surge to $12 million — a threefold increase from the previous quarter, signaling robust growth.

The company’s engagement in power device design-ins reached a substantial $2.1 billion. Impressively, Wolfspeed also set a new quarterly record with design-wins totaling $2.9 billion, with more than three-quarters of these wins tied to automotive applications, reflecting the company’s deepening foothold in the automotive sector.

However, the gross margin figures told a different story. The GAAP gross margin stood at 13.3%, a notable drop from the previous year’s 32.6%. The Non-GAAP gross margin also saw a decrease, coming in at 16.4% compared to the 35.8% reported previously.

Adding to their financial narrative on January 31, 2024, Wolfspeed announced an exciting development. The company has expanded a crucial long-term silicon carbide wafer supply agreement with a premier global semiconductor firm. The value of this expanded contract has reached around $275 million. Under this deal, Wolfspeed will be providing 150mm silicon carbide bare and epitaxial wafers. This agreement not only underscores the growing industry trend shifting from traditional silicon to silicon carbide for semiconductor power devices but also reaffirms both companies’ commitment to spearheading this technological transition.