Wolfspeed Inc. (NYSE:WOLF) is one of the tech stocks to buy according to analysts. On July 22, Susquehanna lowered the price target for Wolfspeed from $3 to $1.50, while maintaining a Neutral rating on the shares. The adjustment came as part of the firm’s Q2 preview for the semiconductor group, with the firm expecting in-line to modest upside reports for the current quarter, driven by tariff-related demand pull-ins and sustained AI strength.
However, Susquehanna’s analysts did note increased uncertainty for the latter half of 2025 within the broader semiconductor market. In FQ3 2025, Wolfspeed showed a sequential revenue growth of 50% at its Mohawk Valley facility, which contributed $78 million in revenue. The company has also established a fully automated 200-millimeter manufacturing footprint for silicon carbide solutions and received ~$192 million in cash tax refunds from the Section 48D advanced manufacturing tax credit, which boosted liquidity.
Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.
Additionally, Wolfspeed is actively engaging with customers for sampling 200-millimeter materials and pursuing new contracts for 200-millimeter wafer supply. But at the same time, the company is undergoing a restructuring, which includes a 30% reduction in its senior leadership team and projected restructuring charges of $400 million to $450 million for FY2025. Free cash flow during the quarter was also negative, at $168 million.
Wolfspeed Inc. (NYSE:WOLF) is a semiconductor company that focuses on silicon carbide and gallium nitride/GaN technologies in Europe, Hong Kong, China, the rest of Asia-Pacific, the US, and internationally.
While we acknowledge the potential of WOLF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
