Wolfspeed Stock Holds Steady As Wall Street Projects Widening Losses In Q2, Retail Sentiment Remains Cautious
The outlook for Wolfspeed remains grim, with gross profit expected to fall nearly 68%, reaching just $11 million. Net losses are forecasted to widen to $129 million.
FollowWolfspeed Inc. (WOLF) stock edged down 0.17% ahead of its second-quarter earnings report scheduled for after the bell.
Wall Street is expecting a loss of $1 per share on revenue of $180 million, according to Koyfin data. The company is yet to report a profit.
The outlook for Wolfspeed remains grim, with gross profit expected to fall nearly 68%, reaching just $11 million.
Net losses are forecasted to widen to $129 million, deepening the financial strain on the company.
Wolfspeed, Inc. makes advanced computer chips using special materials called silicon carbide and gallium nitride. These chips are used in power systems and devices that send or receive radio signals.
Susquehanna recently lowered its price target on Wolfspeed to $7 from $11 while maintaining a ‘Neutral’ rating on the shares as part of a Q4 preview for the semiconductor group, according to TheFly.
The brokerage sees potential upside in data centers, PCs, and mobile, but it says a broad-based recovery "remains choppy" due to uncertain demand and uneven inventory progress.
The analyst sees some upside potential in Q1, though risks will likely overshadow any modest gains in the near term.
Earlier this month, Wolfspeed raised approximately $200 million by selling 27.79 million shares.
The funds were intended to bolster the company’s financial position by reducing debt and addressing upcoming obligations, which management may update during the earnings call.
Wolfspeed Sentiment and Message Volume on Jan.29 as of 12:00 p.m. ET | Source: Stocktwits
On Stocktwits, retail sentiment turned ‘bearish’ from ‘neutral’ a day ago as chatter remained at ‘normal’ levels.
One user expressed concerns that Wolfspeed’s three-day losing streak could worsen if the earnings report fails to meet expectations.
Another user flagged the CEO's absence from the upcoming earnings call as a potential red flag for the company’s outlook.
Wolfspeed’s stock has struggled significantly over the past year, falling 82%.
Losses have continued to mount in 2025, with the stock down 12.3% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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