Is Wolfspeed Stock a Buy?
The silicon carbide chipmaker could stay in the penalty box for a long time.
Wolfspeed (NYSE: WOLF), a producer of silicon carbide (SiC) chips, was once a red-hot semiconductor stock. Its shares surged to a record high of $141.87 on Nov. 16, 2021, clocking in a near-470% gain over the previous five years.
At the time, investors were dazzled by the resilience of its SiC chips, which could operate at higher voltages, temperatures, and frequencies than traditional silicon chips. Those chips were well suited for short-length LEDs, lasers, 5G base stations, military radars, solar panels, wind turbine systems, and electric vehicle (EV) powertrains.
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