Core Insights - The company received a significant IRS cash refund of $698.6 million, which has dramatically improved its financial health and liquidity position to approximately $1.5 billion, surpassing its market capitalization of around $553 million [4][5][3] - This influx of non-dilutive capital allows the company to retire approximately $175 million of outstanding secured debt, enhancing its credit profile and reducing interest expenses [1][9] - The transition to a new manufacturing facility is crucial for the company's long-term growth, as it aims to produce larger, more efficient 200mm wafers, which will lower costs and increase yield [11][16] Financial Position - The company's total liquidity position has increased to approximately $1.5 billion, providing a substantial buffer against market volatility and operational challenges [1][5] - The market is currently undervaluing the company's operations, pricing the stock as if the business assets are worth nearly zero after accounting for debt, despite the strong cash position [13][14] - The company carries approximately $2.1 billion in face value of new notes, but the enterprise value calculation suggests a disconnect between market valuation and actual business operations [14] Strategic Moves - Management's decision to utilize the IRS refund for debt retirement signals a focus on long-term stability rather than short-term spending [9] - The closure of the older Durham facility will remove inefficiencies and allow the company to focus on filling profitable orders at the new Mohawk Valley Fab [10][19] - The company anticipates receiving approximately $1 billion in total refunds, indicating an active pipeline of government incentives that supports its operational transition [7][6] Market Context - The company operates in rapidly growing sectors such as electric vehicles, AI data centers, and energy storage, which are driving demand for Silicon Carbide (SiC) chips [17][15] - The shift to 200mm wafer technology is expected to significantly enhance unit economics, with a 200mm wafer having roughly 1.7 times the surface area of a 150mm wafer, leading to lower production costs [16] - The arrival of the IRS refund marks a pivotal moment for the company, shifting the narrative from survival to execution and growth [18]

Core Viewpoint - Wolfspeed has received a significant income tax refund of $698.6 million from the IRS, which will enhance its cash position but does not fully mitigate its ongoing cash burn issues [1][2][3]. Financial Position - The company has already received $186.5 million in cash refunds under the Advanced Manufacturing Investment Credit (AMIC) for fiscal 2025 and is working towards monetizing approximately $1 billion in cash tax refunds accrued from the AMIC [3]. - Following the latest tax refund, Wolfspeed's cash balance is expected to reach approximately $1.5 billion, providing enhanced financial flexibility for its manufacturing operations [5]. Cash Burn Concerns - Despite the positive cash influx, Wolfspeed has been burning cash for five consecutive years, with nearly $2 billion burned last year and an estimated $2.3 billion expected to be burned this year [5]. - The company currently has about $925 million more cash than debt on its balance sheet, but this cash reserve may not be sufficient to sustain operations in the long term given the ongoing cash burn [3][5].

Core Insights - Wolfspeed has emerged from Chapter 11 bankruptcy protection after significantly reducing its total debt by approximately 70% and extending debt maturities to 2030, which has led to a 60% reduction in annual cash interest expenses [2][10] - The company's stock has increased about 14% since its reopening price of $18 on September 29, indicating a gradual stabilization of its business [3] - Wolfspeed, previously known as Cree, has transitioned to focus solely on silicon carbide (SiC) and gallium nitride (GaN) chips, which are essential for various applications including electric vehicles and industrial systems [3][4] Financial Performance - Wolfspeed's revenue surged by 42% in fiscal 2022 and 24% in fiscal 2023, driven by growth in the electric vehicle, industrial, and renewable energy markets [7] - However, revenue fell by 12% in fiscal 2024 and further declined by 6% to $758 million in fiscal 2025 due to macroeconomic challenges [7][8] - The adjusted gross margin plummeted from 36% in fiscal 2022 to just 2% in fiscal 2025, while annual net losses widened from $201 million to $1.6 billion during the same period [8] Market Position and Strategy - Wolfspeed operates as an integrated device manufacturer (IDM), producing its own chips at first-party foundries, with a focus on expanding its 200mm manufacturing facilities [6] - The company is constructing a second 200mm fab in Siler City, North Carolina, while phasing out older 150mm chip production [6] - Analysts project a compound annual growth rate of 8% for Wolfspeed's revenue from fiscal 2025 to fiscal 2027, despite not expecting stable profits [11] Investment Considerations - With a market cap of $531 million and trading at 0.7 times this year's sales, Wolfspeed's valuation is considered attractive, especially given the high short interest of 62% as of November 14 [12] - The potential for a short squeeze exists if positive news emerges regarding the SiC and GaN markets, making Wolfspeed a potentially good long-term investment for those bullish on these sectors [12]

Core Insights - The article discusses heavily shorted stocks, highlighting the reasons traders engage in short selling and the potential for short squeezes [1][4][10] Group 1: Reasons for Heavy Shorting - Stocks become heavily shorted when experienced traders and institutional investors believe the company is fundamentally overvalued, anticipating a price decline [2][3] - Short sellers borrow shares, sell them at high prices, and aim to repurchase them at lower prices for profit [3] Group 2: Short Squeeze Dynamics - High short interest can attract bullish traders who see potential for rapid gains through short squeezes, where rising stock prices force short sellers to buy back shares, creating a feedback loop that drives prices higher [4][10] - The volatility associated with short squeezes can lead to returns that significantly exceed typical stock movements in a short time frame [5][10] Group 3: Most Shorted Stocks - As of November 26, the top 10 most shorted stocks include: - The Wendy's Co. (NASDAQ:WEN) - 55.36% - Cambium Networks Corp. (NASDAQ:CMBM) - 50.03% - Lucid Group, Inc. (NASDAQ:LCID) - 48.99% - Wolfspeed, Inc. (NYSE:WOLF) - 48.18% - Hertz Global Holdings, Inc. (NASDAQ:HTZ) - 44.67% - Sable Offshore Corp. (NYSE:SOC) - 38.59% - Replimune Group, Inc. (NASDAQ:REPL) - 38.39% - Hims & Hers Health, Inc. (NYSE:HIMS) - 38.12% - aTyr Pharma, Inc. (NASDAQ:ATYR) - 37.92% - Intellia Therapeutics, Inc. (NASDAQ:NTLA) - 37.85% [6][7]

Core Insights - Heavily shorted stocks attract traders due to the potential for profit from a decline in value or a short squeeze [1][4] - A stock is considered heavily shorted when a significant number of traders believe it is overvalued and its price will fall [2][3] Short Selling Mechanics - Short sellers borrow shares, sell them at a high price, and aim to repurchase them at a lower price for profit [3] - High short interest indicates strong conviction among traders that a company faces serious risks [3] Short Squeeze Dynamics - A short squeeze occurs when a stock's price unexpectedly rises, forcing short sellers to buy back shares, which further drives up the price [4] - The volatility associated with short squeezes can lead to returns that exceed typical stock movements in a short time frame [5] Most Shorted Stocks - The top 10 most shorted stocks as of November 26 include: - The Wendy's Co. (NASDAQ:WEN) - 55.36% - Cambium Networks Corp. (NASDAQ:CMBM) - 50.03% - Lucid Group, Inc. (NASDAQ:LCID) - 48.99% - Wolfspeed, Inc. (NYSE:WOLF) - 48.18% - Hertz Global Holdings, Inc. (NASDAQ:HTZ) - 44.67% - Sable Offshore Corp. (NYSE:SOC) - 38.59% - Replimune Group, Inc. (NASDAQ:REPL) - 38.39% - Hims & Hers Health, Inc. (NYSE:HIMS) - 38.12% - aTyr Pharma, Inc. (NASDAQ:ATYR) - 37.92% - Intellia Therapeutics, Inc. (NASDAQ:NTLA) - 37.85% [6][7] Market Implications - Highly shorted stocks represent a battleground between negative fundamentals and speculative trading [10] - Monitoring short interest can help identify potential short squeeze opportunities, though timing remains challenging [10]

Core Viewpoint - Wolfspeed's stock experienced a significant increase of 10.1% following the CEO's vision for the company's future, emphasizing diversification beyond the electric vehicle market [2][3]. Group 1: Company Strategy - CEO Robert Feurle outlined a plan to diversify Wolfspeed's market focus, moving away from an exclusive reliance on the electric vehicle sector [3]. - Feurle acknowledged the importance of electric vehicles but warned against over-concentration, suggesting that the company's technology could also serve aerospace, utilities, and AI data centers [4]. Group 2: Financial Position - After emerging from Chapter 11 Bankruptcy, Wolfspeed has reduced its debt significantly, allowing for a potential refocus and implementation of a new strategy [6]. - The company is currently primarily owned by creditors, which poses a risk of stock dilution [6]. Group 3: Investment Considerations - While there are potential upsides if the company stabilizes, substantial risks remain, making it a questionable investment for most [7]. - Analysts have identified other stocks as better investment opportunities compared to Wolfspeed, indicating a cautious outlook on its future performance [10].

Core Insights - The article compares two semiconductor companies, Navitas and Wolfspeed, focusing on their business models, market positions, and financial outlooks in the SiC and GaN chip markets [4][8][14]. Company Overview - Wolfspeed primarily manufactures SiC materials and power devices, having sold its GaN-on-SiC chip business to MACOM in late 2023 [1]. - Navitas generates most of its revenue from GaNFast Power ICs and has expanded into the SiC market by acquiring GeneSiC in 2022, although its SiC business remains smaller than its GaN operations [2][3]. Market Dynamics - The combined SiC and GaN chip market is projected to grow at a compound annual growth rate (CAGR) of 25% from 2024 to 2032, as these chips replace traditional silicon chips in various applications [4][7]. - SiC chips are suited for high-voltage applications, while GaN chips are more appropriate for low to mid-voltage devices [5][6]. Financial Performance - Both companies faced declining sales due to a cooling market for EVs, solar, and industrial applications. Navitas is expected to see a revenue decline of 44% to $46 million in 2025, while Wolfspeed's revenue is projected to rise 6% to $800 million in fiscal 2026 [8][9][11]. - Wolfspeed emerged from bankruptcy in September 2023, reducing its total debt by 70% and annual cash interest expenses by about 60% [8][12]. Valuation and Investment Outlook - Wolfspeed has an enterprise value of $5.1 billion, trading at five times next year's sales, while Navitas has an enterprise value of $1.7 billion, trading at 42 times next year's sales [13]. - The article suggests that Wolfspeed may be undervalued due to its recent bankruptcy and high debt levels, while Navitas's valuation may be inflated by its deal with Nvidia [14]. Conclusion - The analysis indicates that while Navitas may have higher growth potential in the long term, Wolfspeed is currently a more reasonably valued investment option due to its lower price-to-sales ratio and healthier near-term growth rates [15].

Table of Contents As filed with the U.S. Securities and Exchange Commission on November 13, 2025 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 WOLFSPEED, INC. (Exact name of registrant as specified in its charter) Delaware 3674 56-1572719 (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification Number) ...

Bankruptcy and Restructuring - The company filed for Chapter 11 bankruptcy on June 30, 2025, to implement a prepackaged plan of reorganization[147]. - The restructuring support agreement was executed with stakeholders holding over 97% of the company's senior secured notes and over 67% of convertible notes[148]. - A rights offering was initiated on August 14, 2025, for approximately $301.13 million in new convertible second-lien senior secured notes[149]. - The company emerged from Chapter 11 on September 29, 2025, with 25,840,656 shares of new common stock issued and 73,030,424 shares reserved for issuance[152]. - The company issued secured financing totaling $2.1 billion, including $1.3 billion in new senior secured notes due 2030[157]. - The restructuring plan included a backstop premium of $30.25 million for backstop parties[149]. - The company reduced its overall funded debt by approximately 70%, representing a reduction of approximately $4.6 billion, and reduced its annual total cash interest payments by approximately 60%[206]. - The company has no off-balance sheet arrangements as of September 28, 2025, ensuring liquidity and capital resources are not subject to off-balance sheet risks[210]. Financial Performance - Revenue for the three months ended September 28, 2025, increased by $2.1 million to $196.8 million, a 1% increase compared to the same period in 2024[171][176]. - Power Products revenue rose by 36% to $131.8 million, while Materials Products revenue decreased by 33% to $65.0 million[176]. - Gross margin decreased to (39.2)% from (18.6)%, primarily due to underutilization of the Siler City Fab and unfavorable product mix[171][177]. - Operating loss was $161.4 million, an improvement from a loss of $230.1 million in the prior year[171][174]. - Diluted loss per share increased to $4.12 from $2.23[171][174]. - Cash provided by operating activities was $5.7 million, compared to cash used of $132.0 million in the previous year[171][174]. - Research and development expenses decreased by 38% to $31.7 million, representing 16% of revenue[171][178]. - Sales, general and administrative expenses decreased by $24.3 million, or 39%, from $62.2 million in Q3 2024 to $37.9 million in Q3 2025, representing 19% of revenue[179]. - Net cash provided by operating activities for the first three months of fiscal 2026 was $5.7 million, a significant improvement from a cash used of $132.0 million in the same period of fiscal 2025, reflecting a 104% increase[205]. - Net cash provided by investing activities was $136.9 million in the first three months of fiscal 2026, compared to net cash used of $193.0 million in the same period of fiscal 2025, marking a 171% increase[205]. Strategic Focus and Future Outlook - The company is focused on accelerating product innovation, optimizing manufacturing processes, and improving financial performance[172][175]. - The company continues to expect increased mid and long-term demand for silicon carbide materials and devices despite current softening demand[171]. - The company has invested in new production facilities and R&D to support new product development and lower costs[171]. - The company expects to incur ongoing underutilization costs until market demand for products meets or exceeds production capacity[181]. - The company expects gross capital investment to decrease significantly to approximately $0.1 billion during the remainder of fiscal 2026[207]. - The company anticipates receiving an additional $0.7 billion of incentives primarily related to the AMIC refundable tax credits during fiscal 2026[207]. - The company is evaluating strategic opportunities, including potential acquisitions and joint ventures, and may access capital markets through the issuance of debt or equity[209]. - The company expects to maintain operations and meet obligations to customers, vendors, and employees in the ordinary course of business over the next 12 months[206]. Shareholder and Equity Matters - Two equity compensation plans were adopted, reserving 4,058,925 shares for the long-term incentive plan and 8,117,851 shares for the management incentive plan[158]. - The company issued a warrant to Renesas for 4,943,555 shares of new common stock at an exercise price of $23.95 per share[155]. - The company plans to issue 16,852,372 shares of new common stock to Renesas upon receiving regulatory approvals[153].

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis before making investment decisions [2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility observed in the tech sector [2]. - Analysts are focusing on the performance of companies that have demonstrated resilience during economic downturns, particularly those with strong balance sheets [2]. Group 2: Investment Opportunities - There is a growing interest in renewable energy companies, driven by government incentives and a shift towards sustainable practices [2]. - The healthcare sector is also highlighted as a potential area for investment, especially companies involved in innovative treatments and technologies [2]. Group 3: Risk Factors - The article emphasizes the need for investors to remain cautious due to potential regulatory changes that could affect various industries [2]. - Economic indicators suggest a mixed outlook, which could lead to unpredictable market conditions in the near future [2].