Why Is Wolfspeed Inc (WOLF) Stock Down Today?

Wolfspeed Inc (WOLF) shares fell 15.87% to $24.04 on Thursday. The sharp decline followed the announcement of a conditional $1.5 billion, 30-year loan from the U.S. Department of Defense, a deal that analysts argue does not resolve the company’s ongoing revenue and margin challenges.

What Happened

Wolfspeed secured a conditional $1.5 billion loan from the Defense Department’s Office of Strategic Capital. The agreement includes equity warrants and parallel funding terms designed to refinance existing debt and scale the company’s Siler City silicon carbide plant. Despite the significant government backing, market reaction was negative. One analysis noted that the loan does not solve lingering problems, citing falling revenue, negative margins, and weak catalysts. The stock had already been under pressure, dropping 17.9% over the previous eight sessions from $34.78 to $28.57.

What The Data Shows

The stock opened at $28.05, a 1.8% gap down from the prior close of $28.57. It touched a session high of $28.54 at 8:20 AM ET before sliding to a low of $23.91 at 2:40 PM ET. Volume stood at 3.2 million shares, which is 0.7 times the three-month daily average. Fundamentals show a market cap of $1.5 billion and a P/E ratio of 192.3. Trailing twelve-month revenue declined 12.2%, while the net margin sits at 0.7%. The stock has a beta of 1.31 and trades within a 52-week range of $13.48 to $80.82. On October 14, 2026, the stock printed one fresh 52-week high and 56 fresh 52-week lows. Retail traders on r/wallstreetbets discussed the Pentagon’s commitment, with some viewing the loan as a major development.

What To Watch

Investors will monitor how the market digests the terms of the Defense Department loan and whether the company can demonstrate improved revenue growth and margin stability in upcoming filings.