Wolfspeed (NYSE: WOLF) stock got crushed in 2024 despite a bullish backdrop for the broader market. The silicon-carbide technology specialist’s share price fell 84.7% across last 12 months’s trading, in keeping with data from S&P Global Market Intelligence. Meanwhile, the S&P 500 index climbed 23.3%, and the Nasdaq Composite index rose 28.6%.
Despite a bullish backdrop for the broader semiconductor industry, Wolfspeed stock saw huge selloffs last 12 months because the business continued to post big losses. Along with mounting losses, the corporate’s path to profitability was called into query by closing production facilities and abandoning plans to construct latest plants.
Last 12 months was a troublesome stretch for Wolfpseed. As of the corporate’s most up-to-date quarterly update, the business had lost greater than $750 million over the trailing-12-month period. Wolfspeed closed out its last reported quarter with roughly $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 side canceled business scaling projects that were intended to spice up sales and earnings over the long run. In August, news hit that Wolfspeed can be closing considered one of its production facilities in Durham, North Carolina. In October, it was announced that the corporate was abandoning plans to construct a $3 billion plant in Germany. The corporate also announced that it was closing a facility in Texas.
News hit in November that Woflspeed CEO Gregg Lowe was resigning from his position and that the corporate was within the strategy of finding a latest leadership team. The stock actually saw gains along side the leadership shakeup, nevertheless it still closed out the 12 months with massive losses.
Wolfspeed stock has continued to see big selloffs early in 2025’s trading. The corporate’s share price is down roughly 26% 12 months up to now as of this writing. These selloffs have occurred amid the backdrop of a 0.8% decline for the S&P 500 index and a 1.2% pullback for the Nasdaq Composite index.
While there hasn’t been any major business-specific news pushing the corporate’s share price lower, Wolfspeed has seen its big valuation pullback proceed along side macroeconomic pressures and geopolitical dynamics. The newest data from the Bureau of Labor Statistics showed that the U.S. economy added much more jobs in December than economists had expected, which raised concerns that inflationary pressures could also be on the rise again.