Wolfspeed (WOLF): Assessing a Discounted Valuation After a Volatile Year for Silicon Carbide Growth Prospects

Wolfspeed (WOLF) has been quietly grinding through a tricky year, with the stock down year to date even as its silicon carbide story gains attention among EV and power equipment makers. See our latest analysis for Wolfspeed. The 1 month share price return of 6.9 percent hints that sentiment is stabilising after a tough stretch. However, the year to date share price return remains firmly negative, suggesting momentum is still rebuilding as investors weigh execution risks against Wolfspeed’s long term silicon carbide opportunity. If Wolfspeed’s volatile year has you rethinking where the next big chip winner might emerge, this is a good moment to scout other high growth tech and AI stocks that could benefit from similar structural tailwinds. With shares still down double digits this year and trading at a steep discount to analyst targets, investors now face a key question: Is Wolfspeed an overlooked value in silicon carbide, or is the market fairly pricing its future growth? Price to Sales of 0.6x, Is it justified? At a last close of $18.37, Wolfspeed trades on a price to sales ratio of 0.6x, a steep discount to both peers and the wider US semiconductor industry. The price to sales multiple compares the total market value of the company to the revenue it generates. This can be especially useful for loss making or early stage businesses like Wolfspeed where earnings are still negative. For a company that is currently unprofitable and carrying negative shareholders equity, such a low sales multiple indicates that the market is heavily discounting its long term silicon carbide opportunity relative to current fundamentals. Against a US semiconductor industry average price to sales of 5.3x and a peer average of 5.8x, Wolfspeed’s 0.6x ratio appears significantly lower. This suggests that investors may be assigning weaker prospects to Wolfspeed compared with some other chip companies. See what the numbers say about this price — find out in our valuation breakdown. Result: Price to sales of 0.6x However, significant execution risk around scaling silicon carbide capacity and persistent losses could erode investor patience and keep the valuation depressed. Find out about the key risks to this Wolfspeed narrative. Build Your Own Wolfspeed Narrative If you see Wolfspeed’s story differently or want to dig into the numbers yourself, you can build a personalised view in just a few minutes: Do it your way. A great starting point for your Wolfspeed research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision. Looking for more investment ideas? Do not stop at Wolfspeed when other opportunities are lining up. Use targeted screeners on Simply Wall St to identify potential next moves before other investors do. Look for early-stage opportunities by scanning these 3634 penny stocks with strong financials that already show solid financial underpinnings instead of relying on hype alone. Explore the AI theme with these 24 AI penny stocks that combine scalable technology, revenue traction, and ambitious innovation roadmaps. Focus on these 12 dividend stocks with yields > 3% that may help boost your portfolio income while markets remain unpredictable. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech