Wolfspeed (NYSE: WOLF ) The stock was crushed in 2024 despite a bullish backdrop for the broader market. The silicon-carbide technology specialist’s share price fell 84.7% during the past year’s trading, according to data from . S&P Global Market Intelligence. Meanwhile, the S&P 500 The index climbed 23.3%, and Nasdaq Composite The index rose 28.6%.
Despite a quick background for the comprehensive Semiconductor Industry, Wolfspeed stock saw a big selloff last year as the business continued to post big losses. In addition to mounting losses, the company’s profitability trajectory was called into question by closing production facilities and abandoning plans to build new plants.
Last year was a tough one for Wolfseed. According to the company’s most recent quarterly update, the business lost more than $750 million over the past 12-month period. Wolfspeed closed its last reported quarter with about $3 billion in long-term debt and $3.1 billion in long-term liabilities.
Wolfspeed’s loss and margin problems took on added significance in conjunction with canceled business scaling projects that were intended to increase sales and earnings over the long term. In August, news broke that Wolfspeed would close one of its production facilities in Durham, North Carolina. In October, it was announced that the company was abandoning plans to build a $3 billion plant in Germany. The company also announced that it is closing a facility in Texas.
News broke in November that Wafflespeed CEO Greg Lowe was stepping down and the company was in the process of finding a new leadership team. The stock actually saw gains in conjunction with the leadership shakeup, but it still closed the year with a big loss.
Wolfspeed stock continues to see a big selloff in early 2025 trading. The company’s share price is down nearly 26% year-to-date as of this writing. These selloffs came amid a backdrop of a 0.8% decline for S&P 500 A 1.2% pullback for the index and Nasdaq Composite index.
While there hasn’t been any major business-specific news to lower the company’s share price, Wolfspeed has continued to see its big valuation pullback combined with macroeconomic pressures and geopolitical dynamics. The latest data from the Bureau of Labor Statistics showed the U.S. economy added more jobs in December than economists expected, raising concerns that inflationary pressures could rise again.
