Wolfspeed Inc. saw its stock price surge on Friday, climbing $7.61 to close at $37.14, as a regulatory filing revealed that a group linked to Susquehanna and Capital Ventures has taken a 5.0% beneficial stake in the silicon carbide chipmaker. The filing, submitted with the SEC, comes just days before the company's fiscal third-quarter earnings call scheduled for May 5, placing investor focus squarely on the company's recovery efforts.
The group, which includes Capital Ventures International, Susquehanna Advisors Group, G1 Execution Services, SIG Brokerage, Susquehanna Fundamental Investments, and Susquehanna Securities, disclosed ownership of 2,476,242 shares as of April 24. More than 5.3 million shares traded hands on Friday, reflecting heightened investor interest. The Schedule 13G filing indicates that the securities were not acquired with any intent to control or influence Wolfspeed, with Capital Ventures' stake including shares from convertible notes and Susquehanna Securities reporting options for 1,237,967 shares.
Wolfspeed, which produces energy-efficient silicon carbide chips used in electric vehicles, solar inverters, and industrial power systems, has faced significant headwinds. The company emerged from Chapter 11 bankruptcy last September, but demand has remained choppy amid intense competition from larger rivals like STMicroelectronics and Infineon. The company's latest quarterly results reflected these challenges: fiscal second-quarter revenue came in at roughly $168 million, with a GAAP net loss of $151 million and adjusted EBITDA of negative $82 million. For the fiscal third quarter, management has guided revenue between $140 million and $160 million, signaling continued weakness.
This week, Wolfspeed announced key leadership changes as part of its turnaround strategy. Brad Kohn is set to return on May 11 as executive vice president, chief legal and global affairs officer, bringing experience from previous roles at Wolfspeed, Martin Marietta Materials, and MEMC Electronic Materials. Sonja Burfeind will join as vice president of communications starting July 1, having previously held senior communications positions at Infineon, a direct silicon carbide competitor. Chief Executive Robert Feurle described the hires as a move to strengthen the company's engagement with customers, shareholders, and policymakers.
The leadership shakeup follows a March debt refinancing, in which Wolfspeed issued $379 million of 3.5% convertible secured notes due 2031. The proceeds were used to repay approximately $475.9 million in senior notes. As of March 26, the company reported about $1.0 billion in cash, cash equivalents, and short-term investments. In February, Feurle emphasized the company's disciplined post-restructuring approach, while CFO Gregor van Issum highlighted cost controls, including reductions in expenses and capital spending, alongside a focus on quality, cost, and speed.
Despite the stock rally, fundamental risks remain. Wolfspeed has warned that fiscal third-quarter revenue will decline, citing customer pre-buying, second-sourcing related to the bankruptcy process, and softer electric vehicle demand. The company also projected another negative gross margin for the quarter. Investors will be closely watching Tuesday's earnings call for insights into order quality, cash burn, and whether the company's balance sheet repairs are translating into more predictable demand.
