Latest news with #WolfspeedInc
Time of India
08-07-2025
- Business
- Time of India
Wolfspeed Stock Price Analysis and Forecast: Market performance, investor outlook, key drivers & risks and analyst insights
Wolfspeed Stock Price Analysis and Forecast is one to watch out for. Wolfspeed Inc (NYSE: WOLF) shares have seen a sharp increase following the announcement of a new Chief Financial Officer and updates on its restructuring plans. The stock has gained investor attention as it navigates bankruptcy proceedings and positions itself for long-term growth. Shares Surge Wolfspeed shares jumped 24.79% to $2.92 in premarket trading on July 8, 2025, after closing at $2.31 in the previous session. This marked a 95.76% rise. The stock had earlier reached $3.19, up 36.9% by Tuesday morning. The surge followed Wolfspeed's announcement of Gregor van Issum as CFO, effective September 1, 2025. The company's stock has struggled over the past year, with a 52-week range of $0.39 to $25.49. The recent rise signals a possible shift in investor confidence. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 Most Expensive Cars In The World Undo Why Was Gregor van Issum Hired? Gregor van Issum brings over two decades of experience in corporate restructuring and strategic finance. He has worked with major semiconductor companies including ams-OSRAM AG and NXP Semiconductors N.V. His expertise in cost-saving programs and financial transformation aligns with Wolfspeed's restructuring goals. Van Issum replaces interim CFO Kevin Speirits. His appointment follows the earlier addition of David Emerson as Chief Operating Officer in May 2025, further strengthening Wolfspeed's leadership. Live Events CEO Robert Feurle emphasized van Issum's experience in complex manufacturing and financial leadership. Both executives have worked together previously at ams-OSRAM. Bankruptcy Filing and Debt Reduction Strategy Wolfspeed filed for Chapter 11 bankruptcy in early July. The company aims to reduce its debt by 70%, or around $4.6 billion. This is expected to help the company focus on growth and move toward profitability. Wolfspeed plans to continue operations during restructuring and expects to emerge by the end of Q3 2025. Despite the bankruptcy, Wolfspeed remains committed to delivering silicon carbide materials and devices. The company believes the leadership changes will improve its balance sheet and unlock the potential of its 200mm platform. Also Read: Sullivan's Crossing: Seasons 1 and 2 Netflix US release date, plot and where and how to watch Season 3 Market Performance and Investor Outlook Wolfspeed has a market capitalization of $359.498 million. The trading volume was 434.45 million shares, well above the average of 56.52 million. The stock has a beta of 1.29, showing high volatility. The company reported a negative earnings per share of -$8.26, indicating ongoing profitability challenges. Investors are now watching the upcoming earnings report, expected between August 19 and 25, 2025. Analysts have set a target price of $4.20. If the company executes its transformation plan successfully, long-term shareholders may benefit. However, high risk remains due to potential dilution during the restructuring process. Investor Sentiment and Analyst Views While Wolfspeed shares have rebounded sharply, some analysts remain cautious. The company's debt and bankruptcy status pose risks. The Motley Fool analysts did not include Wolfspeed in their current top 10 stock picks. Still, the market has reacted with optimism, suggesting belief in the new leadership's ability to guide a successful turnaround. Wolfspeed Stock Price Analysis and Forecast Current Performance & Market Behavior Premarket Surge: Wolfspeed shares shot up ~25% to $2.92 on July 8 after jumping 95.76% the previous day—signals strong investor sentiment following leadership announcements. Volatility Profile: Beta of ~1.29, trade volume (~434M shares) heavily outpaced the average (~56.5M), indicating speculative and high-interest trading. Analyst Insights and Price Targets TipRanks (8 analysts): Average 12‑month target of $3.37, with projected range $0.61–$6.00 (≈185% upside). Consensus: Hold (2 Buy, 2 Hold, 4 Sell). MarketBeat (14 analysts): Targets between $3.00–$20.00, averaging $11.15 (≈382% upside). (14 analysts): Average target $10.67 (≈320% upside), range $3–$20. Zacks: Forecasts range $3–$10, representing ~195% upside from recent prices. Growth Forecasts Revenue & EPS Growth: Expected 15.4% annual revenue growth and 52.8% annual EPS growth—well above industry averages (semis: ~22.4%). Industry Perspective: Global silicon carbide is projected to grow ~34.5% annually through 2034—tailwinds for Wolfspeed. Short-Term vs Long-Term Outlook 1–3 months: Technical models expect a drop (~–50%) to $0.10–$1.21, unless bullish catalysts emerge. Next 12 months: Wall Street targets: $3.37–$11.15 median; with high-end potential to $20. Analyst consensus leans Hold. 2025 Q3 Forecast: Q3 EPS around –$0.70 on revenue ≈ $201M (vs $197M LY), highlighting ongoing losses despite sales growth. Also Read: US Stock Markets Gainers Losers: Take a look at biggest stock movers on Tuesday Key Drivers & Risks Drivers Leadership appointments (new CFO, CFO-in) signal strategic financial pivot. Chapter 11 process expected to eliminate ~$4.6B debt (~70%), supported by Apollo and Renesas. Global demand for silicon carbide in EV and power sectors increasing. Risks Continued losses: FY 2024 net loss ~$864M, operating loss ~$445M. Refinancing risk: ~$6.5B debt burden, convertible bonds, and interest rate exposure. Short-term technical outlook weak, barring positive developments. Forecast Summary Short term (3 months): High volatility; technical models signal potential downside to ~$1 or lower. Medium to long term (12 months): Analyst consensus targets ~$3–$11; upside depends on successful bankruptcy exit, debt reduction, and execution of growth strategy. Bull case: Silicon carbide demand + debt clearance → $10+ potential. Bear case: Prolonged restructuring issues, financing barriers, slow EV adoption → under $3. Bottom Line Wolfspeed is in a high-risk, high-reward phase. If it successfully restructures, reduces debt, and scales revenue, analysts see significant upside. However, technical indicators warn of sharp short-term declines. The stock remains a speculative, turnaround play best suited for risk-tolerant investors. FAQs What caused Wolfspeed's stock to rise? Wolfspeed shares surged due to the appointment of Gregor van Issum as CFO and investor optimism about the company's restructuring and debt reduction plans. Will Wolfspeed continue operations during bankruptcy? Yes. Wolfspeed stated it will continue delivering silicon carbide products while undergoing Chapter 11 restructuring, with plans to exit by the end of Q3 2025.
Japan Today
26-06-2025
- Automotive
- Japan Today
Japan chipmaker Renesas postpones achieving 2030 sales goal by 5 years
Japanese chipmaker Renesas Electronics Corp said Thursday it will push back its target of achieving sales of over $20 billion in 2030 by five years in the face of stiff competition from Chinese rivals. The goal is to more than double its sales of 1.35 trillion yen in 2024. Also, Renesas, a major maker of automobile chips, now aims to boost its market capitalization sixfold by 2035, instead of the previously targeted 2030, Renesas CEO Hidetoshi Shibata said at a meeting with investors. "The environment surrounding us has significantly changed. It is not easy now to face off squarely against Chinese firms and beat them," Shibata said. Renesas sees Chinese companies improving their manufacturing skills and technology as they have been facing U.S. export restrictions amid the U.S.-China chip war. On Monday, the company said it expects a loss of about 250 billion yen in the first six months of this year, related to its restructuring support for a U.S. business partner, Wolfspeed Inc. Wolfspeed has suspended the development of silicon carbide wafers for next-generation power semiconductors, which will be used in electric vehicles, among others, even as the U.S. company agreed to supply the wafers to Renesas. © KYODO
Yahoo
22-06-2025
- Business
- Yahoo
Renesas Announces Expected Loss Resulting from Signing Restructuring Support Agreement with Wolfspeed
TOKYO, June 22, 2025--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE: 6723, "Renesas"), a premier supplier of advanced semiconductor solutions, today announced that it has entered into a Restructuring Support Agreement (the "Restructuring Support Agreement") with Wolfspeed, Inc. (NYSE: WOLF, "Wolfspeed") and its principal creditors for the financial restructuring of Wolfspeed. As a result, Renesas expects to record a loss as described below. 1. Details of LossAs announced in July 2023, Renesas entered into the silicon carbide wafer supply agreement with Wolfspeed, and through Renesas' wholly owned subsidiary in the United States, it provided a deposit (the "Deposit") of US$2 billion (approximately 292.0 billion yen) to Wolfspeed. In October 2024, Renesas and Wolfspeed amended their agreement and increased the outstanding principal amount of the Deposit to US$2.062 billion (approximately 301.1 billion yen). Subsequently, Wolfspeed has experienced financial challenges. On May 8, 2025, during its quarterly earnings call, Wolfspeed disclosed that to achieve its stated goal of strengthening its balance sheet, it may implement a transaction through an in-court solution. Due to Wolfspeed's contemplation of an in-court option, Wolfspeed included required going concern language in the footnotes to its financial statements for the quarterly period ended March 30, 2025. In response to this situation, Renesas has been engaging in discussions with Wolfspeed and today entered into the Restructuring Support Agreement among Wolfspeed and its principal creditors, pursuant to which Renesas agreed to, among other things, convert the Deposit of US$2.062 billion into convertible notes, common stock, and warrants issued by Wolfspeed as follows (the "Restructuring"). Wolfspeed convertible notes: US$204 million (approximately 29.8 billion yen) in aggregate principal amount, convertible to Wolfspeed common stock, maturing in June 2031. These notes are convertible into 13.6% of Wolfspeed's total issued shares on a non-diluted basis at the time of the completion of the Restructuring. On a fully diluted basis, and prior to the exercise of the warrants to be granted to Renesas, this corresponds to 11.8%. Wolfspeed common stock: equivalent to 38.7% (17.9% on a fully diluted basis, prior to Renesas warrants exercise) of the total number of issued shares of Wolfspeed at the completion of the Restructuring. Wolfspeed warrants: equivalent to 5% (on a fully diluted basis) of the total number of issued shares of Wolfspeed at the completion of the Restructuring. The Restructuring is expected to be consummated through proceedings under Chapter 11 of the U.S. Bankruptcy Code. It is expected that Wolfspeed will file a petition with the court to initiate such proceedings in the near future. The Restructuring is expected to become effective by the end of September 2025, subject to court approval of the restructuring plan. If the necessary regulatory approvals have not been obtained by the time the Restructuring takes effect, Renesas will hold rights to instruments with equivalent economic value to Wolfspeed's convertible notes, common stock, and warrants until those approvals are received. In connection with the signing of the Restructuring Support Agreement, Renesas expects to record a loss on the deposited receivables related to the Deposit in its consolidated financial statements. Although the timing and amount of such loss have not been determined at this time, Renesas believes that there is a possibility of recording a loss of approximately 250 billion yen (converted at an average exchange rate of 150 yen to the dollar during the period) in the consolidated financial statements for the six months ending June 30, 2025. Please note that this amount is an estimate calculated by Renesas' internal analysis based on the currently available information and may increase or decrease due to various factors. The definitive timing and amount of the loss to be recorded will be determined in consultation with Renesas' auditor and will be announced once it is determined. 2. Future OutlookRenesas discloses revenue, gross margin, and operating margin on a "Non-GAAP" basis and does not disclose a forecast for profit attributable to owners of parent. Therefore, there is no change to the forecast for the six months ending June 30, 2025, announced on April 24, 2025. (Note1) Unless otherwise indicated, yen equivalents in this material are calculated using the exchange rate as of June 20, 2025: 146 yen to the dollar. (Note2) Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS basis) figures following a certain set of rules. Renesas believes non-GAAP measures provide useful information in understanding and evaluating its constant business results, and therefore, forecasts are provided on a non-GAAP basis. This adjustment and exclusion include the amortization of intangible assets recognized from acquisitions, other PPA (purchase price allocation) adjustments and stock-based compensation, as well as other non-recurring expenses and income Renesas believes to be applicable. About Renesas Electronics Corporation Renesas Electronics Corporation (TSE: 6723) empowers a safer, smarter and more sustainable future where technology helps make our lives easier. A leading global provider of microcontrollers, Renesas combines our expertise in embedded processing, analog, power and connectivity to deliver complete semiconductor solutions. These Winning Combinations accelerate time to market for automotive, industrial, infrastructure and IoT applications, enabling billions of connected, intelligent devices that enhance the way people work and live. Learn more at Follow us on LinkedIn, Facebook, Twitter, YouTube, and Instagram. (FORWARD-LOOKING STATEMENTS) The statements in this press release with respect to the plans, strategies and financial outlook of Renesas and its consolidated subsidiaries (collectively "we") are forward-looking statements involving risks and uncertainties. Such forward-looking statements do not represent any guarantee by management of future performance. In many cases, but not all, we use such words as "aim," "anticipate," "believe," "continue," "endeavor," "estimate," "expect," "initiative," "intend," "may," "plan," "potential," "probability," "project," "risk," "seek," "should," "strive," "target," "will" and similar expressions to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements discuss future expectations, identify strategies, contain projections of our results of operations or financial condition, or state other forward-looking information based on our current expectations, assumptions, estimates and projections about our business and industry, our future business strategies and the environment in which we will operate in the future. Known and unknown risks, uncertainties and other factors could cause our actual results, performance or achievements to differ materially from those contained or implied in any forward-looking statement, including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar; and risks and uncertainties associated with Wolfspeed's proceedings under Chapter 11 of the U.S. Bankruptcy Code, including Wolfspeed's ability to maintain relationships with suppliers, customers, employees and other third parties and regulatory authorities as a result of such proceedings, and other factors discussed in Wolfspeed's filings with the U.S. Securities and Exchange Commission. Among other factors, a downturn of the world economy; deteriorating financial conditions in world markets, or a deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. This press release is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither we nor our advisors or representatives are under an obligation to update, revise, or affirm. 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CNA
20-05-2025
- Business
- CNA
Wolfspeed prepares to file for bankruptcy within weeks, WSJ reports
Semiconductor supplier Wolfspeed Inc is preparing to file for bankruptcy within weeks, as it struggles to address its debt pile, the Wall Street Journal reported on Tuesday, citing sources familiar with the matter.
Washington Post
08-05-2025
- Business
- Washington Post
Wolfspeed: Fiscal Q3 Earnings Snapshot
DURHAM, N.C. — DURHAM, N.C. — Wolfspeed, Inc. (WOLF) on Thursday reported a loss of $285.5 million in its fiscal third quarter. On a per-share basis, the Durham, North Carolina-based company said it had a loss of $1.86. Losses, adjusted for non-recurring costs and pretax expenses, were 72 cents per share.
