Wolfspeed stock rises on big boosts to revenue from EVs and AI

By Connor Hart

Shares of Wolfspeed (WOLF) gained after the silicon carbide technologies company projected its electric-vehicle revenue would triple in the current quarter, while its overall business would see a boost from artificial-intelligence data center and solar investments.

The stock rose 7% to $14.46 in after-hours trading Wednesday. Shares ended the regular session up 2.6% at $13.51, putting them down 69% since the beginning of the year.

Chief Executive Gregg Lowe said on a call with analysts that the company's EV revenue has grown for three consecutive quarters despite a declining auto semiconductor market "because some of the EV design-ins we've accumulated over the last five to seven years are just beginning to ramp."

And other critical high-voltage industries and energy markets, such as AI and solar power, will continue to turn to silicon carbide, boosting the company's overall business, he continued.

"We have merely scratched the surface of silicon carbide potential use cases."

The Durham, N.C., company posted a loss of $174.9 million, or $1.39 a share, for its three months ended June 30, compared to a loss of $113.3, or 91 cents a share, in last year's quarter.

On an adjusted basis, the company posted a per-share loss of 89 cents. Analysts polled by FactSet expected an adjusted loss of 85 cents a share.

Revenue fell to $200.7 million from $202.7 million in the previous year. Wall Street forecast revenue of $201.3 million, according to FactSet.

Lowe said the company is identifying areas across its footprint to reduce operating costs, with the goal to reduce capital expenditures by $200 million in fiscal 2025.

For the first quarter of its fiscal 2025, Wolfspeed expects a per-share loss between $1.79 and $1.54 on revenue between $185 million and $215 million. Analysts surveyed by FactSet project a first-quarter loss of $1.17 a share and revenue of $210 million.

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08-21-24 1928ET

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