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Wolfspeed (NYSE: WOLF) stocks were crushed in 2024 despite a bullish backdrop for the broader market. The silicon carbide technology specialist’s share price fell 84.7% in trading last year, according to data from S&P Global Market Intelligence. Meanwhile, the S&P 500 the index rose by 23.3%, and the Nasdaq Composite the index rose by 28.6%.
Despite an optimistic backdrop for the broad semiconductor of the industry, Wolfspeed’s stock saw a big sell-off last year as the business continued to post heavy losses. In addition to mounting losses, the company’s path to profitability was thrown into doubt by the closure of production facilities and the abandonment of plans to build new plants.
Last year was a rough stretch for Wolfpseed. As of the company’s most recent quarterly update, the business had lost more than $750 million in the trailing 12-month period. Wolfspeed ended the last reported quarter with about $3 billion in long-term debt and $3.1 billion in long-term liabilities.
Wolfspeed’s losses and margin problems took on added significance along with canceled commercial-scale projects intended to increase sales and long-term earnings. In August, news broke that Wolfspeed would be closing one of its production facilities in Durham, North Carolina. In October, it was announced that the company was abandoning plans to build a $3 billion plant in Germany. The company also announced it was closing a facility in Texas.
In November, news broke that Woflspeed CEO Gregg Lowe was stepping down and that the company was in the process of finding a new leadership team. The stock actually saw gains along with the leadership reshuffle, but it still ended the year with massive losses.
Wolfspeed shares have continued to experience heavy selling in early trading in 2025. The company’s stock price is down roughly 26% so far this year. These sales have occurred in the context of a fall of 0.8% for the S&P 500 index and a setback of 1.2% for the Nasdaq Composite index
While there hasn’t been any major business-specific news driving down the company’s share price, Wolfspeed has seen its large valuation pullback continue alongside macroeconomic pressures and geopolitical dynamics. The latest data from the Bureau of Labor Statistics showed that the US economy added far more jobs in December than economists had expected, raising concerns that inflationary pressures may rise again .
