Wolfspeed's Short Interest Declines, Indicates Market Sentiment Shift

Monday, Jul 21, 2025 1:21 pm ET1min read

Wolfspeed's WOLF short percent of float has fallen 4.31% since its last report, with 73.10 million shares sold short, representing 74.3% of all regular shares available for trading. The company's peer group average for short interest as a percentage of float is 6.04%, indicating more short interest than most of its peers. This decline in short interest may signal a decrease in bearish sentiment towards the company.

Wolfspeed Inc. (WOLF), a semiconductor company specializing in silicon carbide (SiC) technology, has seen a significant decrease in its short interest. As of July 2, 2025, the company's short percent of float has fallen by 4.31%, with 73.1 million shares sold short, representing 74.3% of all regular shares available for trading [1]. This decline in short interest, which is higher than the average short interest of 6.04% among its peers, may indicate a shift in investor sentiment towards the company.

The decrease in short interest comes amidst Wolfspeed's recent volatility and restructuring efforts. The company has been navigating financial challenges, including a significant debt burden, which led to a bankruptcy filing in June 2025. Despite these challenges, Wolfspeed has taken proactive steps to strengthen its financial foundation and implement a restructuring plan [2]. The appointment of industry veterans as new CFO and COO has also been seen as a positive step towards revitalizing growth [3].

The decline in short interest could be an early sign of a potential bullish trend. Investors may be reassessing their bearish stance on Wolfspeed as the company works towards implementing its restructuring plan. However, it is essential to remain cautious, as the company continues to face significant financial challenges and market volatility.

References:
[1] https://finviz.com/quote.ashx?t=WOLF&ty=si
[2] https://www.bloomberg.com/news/articles/2025-06-30/wolfspeed-files-for-bankruptcy-protection-to-cut-worsening-debt
[3] https://www.businesswire.com/news/home/20250707005838/en/Transformation-and-Strategic-Financing-Expert-Gregor-van-Issum-Appointed-Chief-Financial-Offi

Wolfspeed's Short Interest Declines, Indicates Market Sentiment Shift

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