Wolfspeed Q2 revenue falls on weak EV demand

Overview

• Silicon carbide tech firm's fiscal Q2 revenue reached $168 mln, with AI datacenter rev up 50% QoQ

• Company reduced operating expenses by $200 mln annually and cut capital expenditures by 90%

• Wolfspeed emerged from Chapter 11 bankruptcy, adopting fresh start accounting

Outlook

• Wolfspeed expects fiscal third-quarter revenue between $140 mln and $160 mln

• Company attributes revenue decline to accelerated customer purchases and weaker EV demand

• Operating expenses expected to be flat or slightly down sequentially

Result Drivers

• AI DATACENTER GROWTH - AI datacenter revenue increased 50% sequentially, reflecting strategic expansion in this sector

• COST REDUCTIONS - Co reduced operating expenses by $200 mln annually and cut capital expenditures by 90% compared to Q2 FY 2025

• PRODUCTION SHIFT - Completed shutdown of 150mm device production at Durham fab, shifting to 200mm device fab in Mohawk Valley

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy."

• NOT AVAILABLE

Press Release: ID:nBw6V4JPMa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.