Wolfspeed’s Pivot to Next-Gen Semiconductors Fails to Reverse Steep Decline

Once known as Cree, Wolfspeed's strategic shift from LEDs to silicon carbide and gallium nitride semiconductors has yet to deliver on its promise. A $500 investment five years ago WOULD now be worth a mere $16.42, reflecting the company's struggles in a competitive electric vehicle components market.

Chapter 11 bankruptcy looms despite efforts to clean up the balance sheet. GAAP net losses ballooned to $669 million last quarter, nearly quadruple the previous year's shortfall. The company's specialization in efficient materials hasn't translated to commercial success.

Market observers note the stock has become a cautionary tale among traders. While silicon carbide technology holds long-term potential, Wolfspeed's execution challenges and evaporating shareholder value serve as a stark reminder of the risks in next-generation materials plays.