Wolfspeed to see bumpy road to recovery as EV demand stalls

Wolfspeed (NYSE: WOLF), a leading US manufacturer of silicon carbide chips, is grappling with prolonged revenue declines amid sluggish demand for electric vehicles in the US and Europe. The company has now posted seven consecutive quarters of falling sales, as macroeconomic headwinds and weak EV adoption weigh on its top line.

The outlook has darkened further with the potential auto tariffs under a second Trump administration—measures that could further dampen EV momentum and cloud Wolfspeed’s near-term growth prospects.

In its fiscal third quarter, Wolfspeed reported a -7.6% year-on-year drop in revenue, driven largely by continued weakness in its Materials segment. The Power segment, however, offered a glimmer of resilience. While revenues from its Durham facility continued to decline—set to shut down in 2025—the Mohawk Valley Fab remained a bright spot, helping lift Power revenues by +5%.

Analysts forecast a steep -18% year-on-year drop in Materials revenue to $79 million, offset in part by a +10% rise in Power revenue to an estimated $115 million.

Full-year revenue for fiscal 2025 is projected to fall -7% to $752 million, before staging a modest recovery. Revenues are expected to rebound by +12% in 2026 to $844 million, though analysts have trimmed earlier forecasts amid continued sector uncertainty. Momentum is anticipated to pick up pace in 2027.