Wolfspeed Shares Slump as AI Growth Fails to Ease Loss Concerns

Wolfspeed is a major supplier of silicon carbide, or SiC, power semiconductors used in electric vehicles, industrial equipment and increasingly AI data-center infrastructure. Heavy expansion spending, weaker demand and a strained balance sheet pushed the company through a Chapter 11 restructuring that ended on Sept. 29, 2025. Investors are now watching whether AI-related sales can lift factory utilization and return gross margins to positive territory.

On Aug. 19, Wolfspeed reported fiscal fourth-quarter revenue of $149.6 million, a GAAP gross margin of negative 25% and a $145.4 million net loss. Operating cash outflow was $54 million, while cash, equivalents and short-term investments stood at $1.089 billion on June 28. AI data-center revenue more than doubled in fiscal 2026 and rose about 20% sequentially, but the stock sank nearly 10% after hours. Wolfspeed forecast $140 million to $160 million in fiscal first-quarter revenue and said its non-GAAP gross margin would remain negative.