• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Wolfspeed (WOLF) Valuation Check After Recent Share Price Weakness

    Simply Wall St·12/14/2025 01:20:15
    Listen to the news

    Wolfspeed (WOLF) has been under pressure lately, with the stock down about 6% in the past day and roughly 16% this year, as investors reassess its silicon carbide growth story.

    See our latest analysis for Wolfspeed.

    With the latest 1 day share price return of minus 6.55 percent and a year to date share price return of minus 16.02 percent at a closing share price of 18.56 dollars, the near term momentum around Wolfspeed looks to be fading as investors weigh its hefty investment needs against future silicon carbide upside.

    If Wolfspeed's volatility has you rethinking your exposure to chipmakers, this could be a good moment to explore other high growth tech and AI stocks that may offer a different balance of growth and risk.

    With shares well below analyst targets yet weighed down by heavy losses and capital expenditures, investors face a key question: is Wolfspeed a beaten-down silicon carbide leader on sale, or has the market already priced in its future growth?

    Price-to-Sales of 0.6x: Is it justified?

    At Wolfspeed's last close of 18.56 dollars, the market is assigning a price-to-sales ratio of just 0.6 times, far below typical semiconductor valuations.

    The price-to-sales multiple compares the company’s market value to its annual revenue; it is a useful yardstick for unprofitable or early stage chipmakers where earnings are still negative.

    In Wolfspeed’s case, the low 0.6 times ratio suggests investors are heavily discounting its silicon carbide growth ambitions, including expectations that earnings could swing to profit over the next few years.

    Compared to both its closest peers on 5.9 times sales and the broader US semiconductor industry at 5.4 times, Wolfspeed's valuation sits at a steep discount. This implies the market expects significantly weaker execution or sustained financial strain.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-Sales of 0.6x (UNDERVALUED)

    However, heavy ongoing losses and massive capital spending needs could erode investor patience, especially if demand for silicon carbide devices softens or increases more slowly than expected.

    Find out about the key risks to this Wolfspeed narrative.

    Build Your Own Wolfspeed Narrative

    If our take does not fully align with your own view, dive into the numbers yourself and build a custom narrative in 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?

    Use the Simply Wall Street Screener to pinpoint fresh opportunities beyond Wolfspeed. Otherwise, you risk missing high potential stocks quietly compounding away from the spotlight.

    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.