Wolfspeed soars on Pentagon financing deal
Wolfspeed said it received a conditional $1.5 billion long-term financing commitment from the Defense Department. The deal sent shares up almost 24% in late trading.
By Al Root Shares of silicon carbide semiconductor maker Wolfspeed soared late Wednesday after announcing a financing deal with the Pentagon. 80. Through Wednesday trading, shares were up 18% over the past 12 months, although shares were down more than 50% from a May 52-week high of more than $80. 5 billion in long-term 30-year financing, contingent on producing silicon carbide materials and other power devices in America.
5% of Wolfspeed stock if and when the deal is executed. Most chips are made on silicon. Silicon carbide substrates are good for high-voltage applications such as data centers and electric vehicles. They also find their way into satellite technologies.
The Defense Department has been investing heavily to boost domestic production of key materials. In July 2025, it provided MP Materials with capital, a price floor, and a guaranteed customer for MP's rare earth materials in a landmark deal. "Silicon carbide and gallium nitride have critical national security applications," said Wolfspeed CEO Robert Feurle in a news release. S.
" The Trump administration has revived the use of Department of War as a secondary name for the DOD. Gallium nitride is another Wolfspeed product used in high-end electronics, including radars. The financing commitment is helpful. Wolfspeed isn't profitable yet, and it is spending heavily on facilities in North Carolina and New York.
Capital spending is ramping down in 2026 as construction wraps up. Wolfspeed remains a relatively small company, with a market value of about $2 billion. Only three analysts cover the stock. All three rate shares Hold.
com. This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires October 07, 2026 17:53 ET (21:53 GMT) Copyright (c) 2026 Dow Jones & Company, Inc.
The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.