Here is Why Wolfspeed (WOLF) is One of the Best Performing Semiconductor Stocks So Far in 2026

Maham Fatima

Mon, May 18, 2026 at 10:39 AM EDT 2 min read

Wolfspeed Inc. (NYSE:WOLF) is one of the best performing semiconductor stocks so far in 2026. On May 5, Wolfspeed reported FQ3 2026 consolidated revenue of ~$150 million, hitting the midpoint of its guidance range. The company recorded a GAAP gross margin of negative 27% and a non-GAAP gross margin of negative 21%, leading to a GAAP net loss of $120 million and an adjusted EBITDA of negative $62 million. Operating cash flow stood at negative $84 million.

To improve its financial flexibility, the company refinanced ~$476 million of first-lien debt. This strategic move reduced Wolfspeed’s total debt balance by $97 million and is projected to lower annual interest expenses by an estimated $62 million. Backed by $1.2 billion in cash, cash equivalents, and short-term investments, the company also boosted its equity position by over $400 million, aided by CFIUS clearance and an equity issuance to Renesas.

Operationally, Wolfspeed Inc. (NYSE:WOLF) secured 30% sequential growth in AI data center applications and pivoted its Durham facilities entirely to materials production. The company launched its next-generation TOLT portfolio and introduced the first commercially available 10 kV silicon carbide power MOSFET for grid and data center infrastructure. For FQ4, management expects revenue between $140 and $160 million, with flat operating expenses and remaining negative gross margins.

Wolfspeed Inc. (NYSE:WOLF) is an American company that develops and manufactures wide-bandgap semiconductors. The company focuses on silicon carbide materials and power devices for various applications such as electric vehicles, fast charging, and renewable energy and storage.

While we acknowledge the potential of WOLF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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