Wolfspeed Reports Strong Quarter, But EV Pipeline Is Key Investment Story
August 31, 2022
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The auto sector continues to be one of the best areas to invest in the semiconductor space. With the continued growth of electric vehicles, Wolfspeed($NYSE:WOLF) is in a unique position to benefit from this trend. The company’s products are used in a variety of electric vehicles, including the Tesla Model
Looking ahead, Wolfspeed is well positioned to capitalize on the growing demand for its products. The company’s massive EV related pipeline should provide strong growth for the company in the years to come.
Market Price
However, investors are focused on the company’s electric vehicle business, which is still in the early stages. On Monday, Wolfspeed stock opened at $116.0 and closed at $115.9.
However, the EV business is where the real growth potential lies. The company is also working on EV battery charging solutions. Investors are betting that Wolfspeed’s EV business will take off in the coming years.
VI Analysis
VI’s Star Chart categorizes WOLFSPEED as a ‘rhino’, a company that has achieved moderate revenue or earnings growth. Rhino companies are seen as less risky and volatile as they pursue a sustainable growth rate.
However, the company has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it might be able to sustain future operations in times of crisis.
Summary
Electric vehicles are the future of the automotive industry, and Wolfspeed is one of the leading suppliers of critical components for EVs. Wolfspeed is a subsidiary of Cree, Inc , a leading innovator of lighting-class LEDs, lighting products and semiconductor products for power and radiofrequency applications. Wolfspeed’s products include silicon carbide materials, power devices and RF devices. The company’s SiC materials are used in a variety of applications, including electric vehicles, solar power, wind power, industrial motors and power supplies. SiC is a critical component in EV powertrains, and Wolfspeed is one of the leading suppliers of SiC materials. Wolfspeed is also supplying SiC MOSFETs for the Tesla Model S and Model X. The EV market is expected to grow rapidly in the coming years, and Wolfspeed is well positioned to benefit from this growth. The company’s SiC materials are critical components in EV powertrains, and the company has a strong pipeline of EV projects. Wolfspeed is an attractive investment for investors looking to benefit from the growth of the EV market.
