Wolfspeed Outlook: A Tumultuous Ride Amid Mixed Signals

Market Snapshot

Wolfspeed (WOLF.N) is currently showing a mixed outlook — with a recent price rise of 1.59%, but fundamental and technical indicators suggesting caution and volatility. The stock is underperforming based on analyst ratings but shows strong inflows from large investors.

News Highlights

Recent news affecting Wolfspeed and the semiconductor sector includes:

Synopsys halts China sales: Due to U.S. export restrictions, a move that could ripple through the supply chain and indirectly impact Wolfspeed, especially given the global nature of semiconductor manufacturing.

McKinsey weighs in on tariffs: New research indicates that U.S. tariff policies are likely to create turbulence in the semiconductor industry. This could create headwinds for Wolfspeed's operations, particularly if materials or components are affected.

DuPont’s SWOT analysis: The company is considering an electronics spin-off. While this doesn’t directly affect Wolfspeed, it reflects broader industry trends and may shift investor sentiment toward pure-play semiconductor companies.

Analyst Views & Fundamentals

The current analyst consensus is divided, with only one active analyst from Susquehanna giving a Neutral rating. The simple average rating is 3.00, while the performance-weighted rating is 1.39, indicating a significant disparity in expectations and a generally pessimistic outlook.

Meanwhile, the stock’s price has risen in recent days, suggesting a mismatch between analyst expectations and market behavior.

Key Fundamental Factors

EV/EBIT: -16.71 – A very weak indicator with an internal diagnostic score of 0.00.

PE: -15.58 – Extremely low, with an internal score of 0.00.

Gross Profit Margin (GPM): -12.14% – A negative value with an internal diagnostic score of 9.38, indicating the model sees some positive potential here.

CFOA: -1.88% – Weak cash flow, with a score of 0.00.

Interest Coverage Ratio: 117.02% – Strong with a score of 9.38.

Revenue-Market Value (Revenue-MV): 4.89% – Positive, with a strong score of 9.38.

Money-Flow Trends

Big money is flowing into Wolfspeed, with an overall inflow ratio of 56.97% and a fund flow score of 8.33 (excellent). Big institutional blocks are driving the trend, with a block inflow ratio of 58.51% and a positive overall trend. Large and extra-large investors are also contributing, with inflow ratios of 52.42% and 60.46%, respectively. Retail investors are slightly less enthusiastic — the small investor trend is negative with an inflow ratio of 48.57%.

Key Technical Signals

Wolfspeed’s technical indicators suggest weak trend strength, with an internal diagnostic score of 4.44 and a warning that the market is in a volatile state with 2 bearish signals vs. 0 bullish.

Recent Chart Patterns

Long Upper Shadow (2025-11-18, 2025-11-20, 2025-11-21, 2025-11-24) – A neutral bias with a score of 2.62.

Long Lower Shadow (2025-11-19, 2025-11-24, 2025-11-21) – Another neutral bias with a score of 2.50.

WR Oversold (2025-11-18, 2025-11-20) – Shows a neutral rise with a score of 6.60.

Bearish Engulfing (2025-11-20) – A neutral rise with a strong score of 6.05, suggesting bearish momentum is gaining.

Bottom line: The stock’s technical setup remains weak, with bearish indicators dominating in the last five trading days. Traders should watch for a potential pull-back before initiating long positions.

Conclusion

Given Wolfspeed’s mixed fundamentals and weak technical signals, a cautious approach is warranted. The strong inflow from large investors suggests long-term interest, but the price rise doesn’t align with most analyst views. Consider waiting for a pull-back or a clearer trend signal before making a move. Keep an eye on both macroeconomic trends and any upcoming developments in the broader semiconductor industry.