Why Is Wolfspeed Stock Up Today?
Shares of Wolfspeed, Inc. (NASDAQ:WOLF) are trading higher on Monday after the company said it received a large tax refund from the IRS.
- WOLF stock is showing exceptional strength. Find out why here.
What To Know: Wolfspeed received $698.6 million in cash tax refunds from the IRS’s Advanced Manufacturing Investment Credit. The refund represents a significant step in the monetization of the approximately $1 billion of Section 48D cash tax refunds accrued from the credit.
Wolfspeed will allocate $192.2 million of the refund toward retiring approximately $175 million of outstanding debt, with the remaining funds for general corporate purposes.
Wolfspeed's cash balance is now approximately $1.5 billion. The company, which develops and produces silicon carbide technology, plans to diversify its power device revenue into AI data centers, aerospace and defense and industrial and energy, in addition to the electric vehicle market.
In fiscal 2025, Wolfspeed said it received $186.5 million in cash tax refunds related to its fiscal year 2023 and fiscal year 2024 federal tax filings.
"This substantial cash infusion further strengthens our liquidity position at a critical phase in Wolfspeed's strategic evolution," said Wolfspeed CFO Gregor Van Issum. "It provides us with the financial agility to support long-term growth, manage our capital structure responsibly, and continue driving innovation across the silicon carbide value chain for our customers."
WOLF Analysis: Wolfspeed is trading approximately 3.7% below its 50-day moving average of $22.02, suggesting that it may be experiencing a short-term pullback. In contrast, the stock is trading a remarkable 180.4% above its 200-day moving average of $7.56, highlighting its long-term bullish trend. The relative strength index (RSI) is positioned at 51.42, indicating a neutral momentum that could suggest a consolidation phase before any further directional movement.
WOLF Price Action: Shares were up 5.13%, trading at $21.52 at the time of publication, according to Benzinga Pro.
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