Wolfspeed (WOLF) has seen its shares lose steam, charting a year-to-date decline of nearly 50. The fiscal Q3 2025 earnings call did little to soothe market nerves, instead shining a light on the financial headwinds the firm continues to weather. 

Analysts wasted no time recalibrating their price targets, a clear reflection of the cautious sentiment swirling around the stock. Yet amid the uncertainty, a silver lining has emerged. Management announced that the firm’s 200-millimeter products have reached industry-leading quality benchmarks.

Meanwhile, Wolfspeed is laying critical groundwork by sampling materials and hammering out new wafer supply agreements to sharpen its competitive edge. The company set an ambitious target for $200 million in annual cash savings and unlocking $150 million in liquidity through non-core asset divestitures. 

The stock now hovers near its 52-week low, mirroring the cautious sentiment that’s taken hold. But with strategic moves and cost discipline underway, let us see if the dip marks a setback or a window of opportunity for investors.

About Wolfspeed Stock

The Durham, North Carolina-based Wolfspeed (WOLF) specializes in silicon carbide innovation. With a market cap of $418.9 million, the company stands at the crossroads of next-generation energy solutions, designing power-switching and radio frequency devices that fuel electric vehicles, fast-charging systems, and renewable grids. 

Wolfspeed’s technological footprint even stretches into aerospace and defense, lending muscle to mission-critical applications. Yet, over the past 52 weeks, WOLF has dropped by a staggering 86%.

Still, green shoots are emerging. Over the past month, the stock has rebounded by 53%, offering a glimmer of hope that momentum might be shifting. Investors took heart when the company released its latest financials, sending the stock up 7.8% on May 8.

A Closer Look at Wolfspeed’s Q3 Earnings

On May 8, Wolfspeed opened the books on its fiscal Q3 2025 performance. The company posted revenues of $185.4 million, a 7.6% decline from the same quarter last year and just a whisker below Wall Street’s estimate of $186.3 million. The lion’s share of this figure came from the Mohawk Valley Fab, which alone contributed $78 million. 

Diving deeper into the revenue streams, Power Products stood tall, generating $107.5 million, a 5.3% rise year over year, and making up 58% of total revenues. On the flip side, Materials Products didn’t fare as well. It brought in $77.9 million, slipping 21% from the previous year and accounting for 42% of the total. 

The bottom line painted a starker picture. Wolfspeed reported a net loss of $285.5 million, translating to a loss of $1.86 per share. Adjusted loss per share came in at $0.72 per share, worse than last year but still ahead of the expected $0.82 loss, offering a sliver of relief to investors.

As of March 30, the company held $1.3 billion in cash, cash equivalents, and short-term investments. Free cash outflow stood at $168 million.

CEO Robert Feurle stressed that the focus now lies in right-sizing operations and charging towards cash flow breakeven. The restructuring blueprint includes the closure of the Farmers Branch 150-mm facility and a planned shutdown of the Durham 150-mm wafer fab by year-end, trimming the workforce by about 25%. 

Analysts forecast a narrower Q4 2025 loss per share of $0.93, narrowing 12.3% year-over-year. However, for the full fiscal year losses expected to rise 22.4% to $3.99. 

What Do Analysts Expect for Wolfspeed Stock?

The consensus price target on WOLF tells a much more positive story. Despite the decline, the stock has a “Hold” consensus. Out of 12 analysts, four have issued a “Strong Buy,” four have opted for “Hold,” one suggests a “Moderate Sell,” and three are advising a “Strong Sell.”

The average price target of $7.80 represents potential upside of 137.8%, while the Street-high target of $13 signals a possible surge of 296.3% from current levels. While the stock is struggling now, analysts believe it could more than double over the next 12 months if it manages to rebound.