Wolfspeed, Q1 2027 Earnings Call Transcript

Wolfspeed reported Q1 revenue of $155 million, above the midpoint of guidance, with gross margin improving as utilization rose after inventory reductions. The company expects Q2 revenue of $155 million–$175 million and gross margin to approach break-even; management says underutilization remains the main constraint and sees fiscal 2027 as a turning point for growth and profitability. AI data centers are its fastest-growing market, with revenue more than doubling year over year on a trailing 12-month basis and orders accelerating. Management also expects EV demand and 800-volt data-center systems to help absorb silicon carbide capacity and improve market balance.

A conditional $1.5 billion, 30-year U.S. government loan commitment could refinance higher-cost debt and support investment in silicon carbide, domestic GaN capabilities and other initiatives using existing facilities. The refinancing is expected to generate more than $50 million in annual interest savings, but remains subject to due diligence, financing commitments and other conditions. Wolfspeed plans to extend its portfolio into GaN for data-center power and humanoid robotics, while pursuing growth in automotive, defense and materials markets.