Wolfspeed: What's Going On With The Stock?
Sep 17 - Wolfspeed 
WOLF shares fell about 12% on Tuesday after the company rolled out its portfolio of 200mm silicon carbide wafers, then bounced back with a roughly 6% gain in early Wednesday trading. The wider-diameter wafers aim at power electronics, EVs, renewable energy, industrial systems and data centers, and Wolfspeed says the move helps customers scale production and improve device performance.
Chief Business Officer Cengiz Balkas says the 200mm SiC wafers represent a materials innovation that helps customers accelerate device roadmaps. TrendForce first reported the official rollout. Wolfspeed plans to ramp production to commercial scale, which requires capital investment and work to optimize yields.
What's going on: investors reacted to two competing signals. The initial sell-off likely reflected near-term concerns about ramp costs and timing. The early Wednesday bounce looks like traders stepping back in, focusing on longer-term demand for SiC and the potential for lower per-unit costs at scale.
Analysts point out that larger wafers can cut manufacturing costs over time but only if Wolfspeed nails yields and volume. For now, the stock move shows the market weighing immediate execution risks against the upside from growing SiC adoption.
Is WOLF Stock a Buy?
Based on the one year price targets offered by 4 analysts, the average target price for Wolfspeed Inc is $5.55 with a high estimate of $12.70 and a low estimate of $1.50. The average target implies a upside of +124.70% from the current price of $2.47.