Is Wolfspeed Stuck in Neutral?

Wolfspeed (NYSE: WOLF) is one of Wall Street's ultimate battleground stocks.
As the world's largest provider of silicon carbide, it supplies one of the most necessary materials for next-generation Electric Vehicles. Based on the size of its potential market and the long-term supply agreements with large automakers, its stock appears to be extremely undervalued.
Yet Wolfspeed is also facing some serious headwinds, specifically in government-supported financing to construct its fabs and lagging demand for EVs from consumers. It's fallen short of its explicitly-stated guidance, which has hurt its credibility with investors.
So is Wolfspeed's stock a howling buy or a whimpering sell?
In today's episode, 7investing Simon Erickson describes several of the opportunities and challenges that Wolfspeed faces. He discusses several financial and operational updates, the crucial difference between "design-ins" and "design-wins", and what investors should be watching most closely.
7investing issues Conviction Ratings for all of the stocks in our coverage universe. Ranging from "Strong Buy" to "Sell" and all points in between, these represent how confident we are about investing in a particular stock right now.
To see our current Conviction Rating for Wolfspeed (which might actually surprise you), sign up for our premium membership at ⁠7investing.com/subscribe⁠. Use promo code "september" at checkout to waive our signup fee and to get your first week entirely free!