Wolfspeed Posts Narrower Loss on AI Data Center Growth, but Negative Margins Persist — Wolfspeed, Inc.

Event summary

Wolfspeed reported $150M in Q4 revenue, aligning with guidance but posting a GAAP gross margin of -25% and a net loss of $145M.
AI data center revenue doubled year-over-year and grew 20% sequentially, highlighting strategic focus on high-growth applications.
Launched fifth-generation SiC MOSFET, named 'Top Innovation' at the 2026 Power Conversion and Intelligent Motion conference.
Appointed Andy Mattes, an experienced public technology company executive, to the Board of Directors.
Expects Q1 fiscal 2027 revenue between $140M and $160M with non-GAAP gross margin remaining negative.

The big picture

Wolfspeed's strategic focus on AI data centers and silicon carbide technology positions it within the broader shift toward energy-efficient computing and electric vehicle infrastructure. However, persistent negative margins and high operating expenses signal ongoing challenges in balancing growth with financial stability. The company's ability to leverage its technological advancements into sustainable profitability will be critical in the coming quarters.

What we're watching

Market Expansion: Whether Wolfspeed can sustain AI data center revenue growth amid broader economic uncertainty.
Financial Health: The pace at which Wolfspeed can reduce debt and improve margins following its Chapter 11 emergence.
Technological Leadership: How the fifth-generation SiC MOSFET will impact competitive positioning in high-voltage applications.