Semiconductor company Wolfspeed (WOLF 16.57%) has delivered one of the market's biggest turnarounds this year. A Chapter 11 bankruptcy restructuring in late September eliminated 70% of the company's debt and drove its share price up over 2,000%.
The question is whether Wolfspeed has real long-term value or is just another meme stock. Here's what prospective investors need to know.
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Wolfspeed is still in financial trouble
Restructuring wiped away a large portion of Wolfspeed's debt -- and, it should be mentioned, all of the company's legacy shares, which were replaced with just 1.3 million new shares for existing shareholders. Even though Wolfspeed is in a less precarious position, bankruptcy never fixes everything.
In its 2025 fiscal year (which ended on June 30, 2025), Wolfspeed reported $758 million in revenue, a 6% year-over-year decrease. The cost of that revenue was $879 million, a 20% increase. Neither of those numbers is moving in the right direction. Wolfspeed had to spend significantly more money to make less, and overall, it lost $1.6 billion.
NYSE: WOLF
Key Data Points
On a positive note, Wolfspeed is currently trading at about 1 times sales, which is dirt cheap for a semiconductor company. Its semiconductors can also handle higher voltages and temperatures, a key advantage over traditional options. Wolfspeed could still have a future, considering that it makes a high-quality, cutting-edge product. But given the risk involved, I wouldn't consider anything more than a small investment in it.
