Wolfspeed Inc. Common Stock Q1 2027 Earnings Recap

Wolfspeed shares fell 10.9% after earnings, suggesting investors were not reassured by Q1 revenue above the midpoint of guidance. The transcript points to uncertainty around execution and funding: the proposed $1.5 billion government loan is conditional, while the company is pursuing a broad SiC and GaN investment program.

Key Takeaways

• Q1 revenue was $155 million, above the midpoint of management’s guidance range.
• Wolfspeed announced a conditional 30-year, $1.5 billion Department of War loan commitment. Tranche A would refinance higher-cost debt; later tranches could fund a multi-year investment program.
• The proposed program spans SiC, domestic GaN power devices, GaN on SiC RF materials, and radiation-hardening capabilities. Management said it would use existing sites and capabilities rather than build additional facilities.
• Management said AI data-center revenue more than doubled year over year on a trailing 12-month basis and that the order book is accelerating, but provided no figures for either claim.
• Wolfspeed signed a majority-share, long-term supply agreement with BorgWarner for its next-generation 800-volt SiC inverter platform.