Wolfspeed Shares Surge on Reduced Q2 Loss Forecast and Optimistic Production Ramp-Up at New York Facility

Wolfspeed's Q2 loss projection lower than expected as chipmaker begins to generate revenue from its New York Mohawk Valley plant, aiming to hit 20% utilization goal.

• Wolfspeed reported Q1 earnings per share loss of 53 cents, beating the estimated losses of 67 cents and marking a 4% YoY increase. However, the company's Q1 revenue of $197.4 million missed the $207.64 million estimate.
• For Q2, Wolfspeed is projecting a smaller-than-anticipated loss and revenues between $192 million and $222 million, above the $221.31 million estimate. This optimistic forecast boosted the company's shares.
• Wolfspeed's new facility, Mohawk Valley Fab in New York, has started contributing to the company's revenue and is on track to achieve its 20% utilization goal. This facility is a significant factor behind the company's strong forecast.
• The Mohawk Valley Fab contributed $4 million to Wolfspeed's Q3 revenue, exceeding the expected contribution of about $3 million. The company has also claimed to have enough qualified product to satisfy the plant's 20% utilization goals.
• Wolfspeed manufactures silicon carbide chips used to extend the range of electric vehicles. This market is expected to drive the company's future growth as it ramps up production.

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