Wolfspeed: Anything But Getting Up To Speed

Summary

• Wolfspeed's transition to silicon carbide has led to growing losses, high capital spending, and underwhelming financial results, despite positive news about the CHIPS act.
• The company has a history of boom-bust cycles, with recent performance showing no revenue growth but increasing operating losses and a significant net debt load.
• Despite securing up to $1.5 billion in new financing, first-quarter results were disappointing, with flat sales and massive operating losses, casting doubt on future prospects.
• The company's financial outlook remains bleak, with a shocking second-quarter sales forecast and a huge debt burden, raising questions about potential returns for equity holders.