Wolfspeed Shares Get EXECUTED in Single-Session Nightmare–Chip Act Funding Gone?

Well, Wolfspeed just got taken out back and shot by the market. Shares cratered nearly 50% in a single session today, faceplanting to $2.81—their lowest level since 1998, back when nobody had ever heard the word “semiconductor” outside of a RadioShack. That’s a 59% nosedive just this year and an 82% implosion over the last twelve months. Melt = down. 

(Source: Giphy) 

In short, Wolf has been on life support for months, just waiting for someone to pull the plug. And on today March 28th, 2025, the market finally did. The headline excuse this time was none other than speculation around Wolfspeed losing access to its $750 million in CHIPS Act funding. That’s the federal stimulus money it’s been counting on to finish building its Siler City silicon carbide factory—a facility that, without the cash, might as well be a very expensive monument to poor timing and bad financial planning.

Now, to be clear, the funding hasn’t officially been pulled. But it hasn’t been awarded either. And with Trump now screaming into microphones about killing the CHIPS Act and “using the money to pay down debt”, it’s looking more like a political football than a financial guarantee. As CFRA’s Brooks Idlet put it, if the funding gets yanked, it would be “devastating.” Which means Wolfspeed really is f*ked. 

(Source: Reuters) 

But, but, but… that’s only the top layer of this dumpster fire. How so? Well, because Wolfspeed’s business itself is collapsing in slow motion. For instance, revenue for the December quarter came in at $180.5 million—that’s down 13% year-over-year, all while the company lost $0.95 per share. Additionally, they’re laying off a few hundred employees, shuttering their Durham fab, and still burning cash like it comes with a loyalty program.

Of course, their core product—silicon carbide chips—was supposed to be the holy grail for EVs and high-voltage systems. And to be fair, the demand is still there. The execution? Not so much. Automotive customers are pulling back, and Wolfspeed doesn’t have the scale or the balance sheet to ride out the storm. They’re bleeding, and the market smells it. Especially after they fired their last CEO “without cause” in November (great sign), and just now announced a new one—Robert Feurle—who starts May 1st. 

(Source: Seeking Alpha) 

Meanwhile, analysts are cutting price targets left, right, and twice on Sunday. Citi cut its price target to $7. JPMorgan’s at $8. Canaccord is still clinging to a Buy at $10 like it’s a security blanket. And Goldman Sachs, bless their hearts, is still out here with a $15 target, pretending this is just a misunderstood growth story LOL. Not to mention the short interest on Wolf is at an astounding 32.5% of the float. Now whether that’s a good sign or bad sign is entirely dependent on if you’re a subscriber to Roaring Kitty or not. 

But alas, what happens next? Best-case scenario, Wolf scrapes enough funding together to keep Siler City alive, manage to stop hemorrhaging cash, and ride the eventual EV wave back to relevance. Worst-case? No CHIPS money, another round of layoffs, and a last-ditch restructuring that makes Bed Bath & Beyond look graceful. 

(Source: Giphy) 

Either way, this isn’t just a bad quarter. It’s a reckoning. Wolfspeed promised the moon and is now struggling to build the launchpad. The tech is real. The market is legit. But the business is in the sh*tter and so is the stock price. Meaning, unless some kind of miracle happens (like CHIP funding), it’s only going to get uglier. Welcome to the slaughterhouse, Wolf—you just got a front-row seat.

Of course, do what you will with this information and place your bets accordingly, friends. As always, stay safe and stay frosty! Until next time… 

P.S. Just when you thought our beloved congressmen couldn’t get any greasier, one Republican lawmaker decided to YOLO $175k into a stock… right before a major FDIC announcement hit. Lucky timing? Insider edge? You be the judge. We broke it all down inside our recent Stocks.News premium article… click here to check it out ASAP. 

Stocks.News does not hold positions in companies mentioned in the article.