Wolfspeed Faces Debt Negotiations, CFO Transition Expected May 2025

Wolfspeed is undergoing significant leadership transitions, with Chief Financial Officer Neill Reynolds set to leave by May 2025 and a new CEO, Robert Feurle, recently appointed to address the company's substantial $6.4 billion long-term debt and broader strategic challenges. The company is actively negotiating with lenders to refinance its obligations and is seeking support through a $750 million grant under the U.S. CHIPS Act, as it aims to strengthen its capital structure and diversify beyond electric vehicles into data centers and renewable energy. Despite these changes, Wolfspeed reaffirmed its financial guidance for the third quarter of fiscal 2025, and market sentiment remains mixed: while recent executive transitions and broader tech sector rallies fueled a short-term 38% stock price increase, long-term shareholder returns have declined sharply. Analyst projections vary widely on the company’s future, with some optimistic estimates of significant upside based on business growth and anticipated performance, while consensus forecasts remain cautious, rating the stock as a 'Hold.' Wolfspeed continues to face challenges regarding profitability, with no immediate return to profitability anticipated in the coming years, yet its technology positions it to potentially benefit from increasing demand for energy-efficient solutions. The company’s performance and strategic direction remain under close investor scrutiny ahead of its May 2025 earnings report.