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Wolfspeed Shares Jump After Receiving Nearly $700 Million IRS Tax Refund

MarketDash Editorial Team
7 days ago
Wolfspeed received $698.6 million from the IRS under the Advanced Manufacturing Investment Credit, boosting its cash balance to $1.5 billion and giving it financial flexibility to pay down debt and support its expansion beyond electric vehicles into AI data centers and aerospace markets.

Wolfspeed, Inc. (WOLF) shares rallied Monday after the silicon carbide technology company announced it received a massive cash injection from the IRS that significantly strengthens its financial position.

The Tax Refund Details

Wolfspeed pulled in $698.6 million in cash tax refunds from the IRS's Advanced Manufacturing Investment Credit. This represents a major chunk of the approximately $1 billion in Section 48D cash tax refunds the company has accrued from the credit program, which incentivizes domestic semiconductor manufacturing.

The company isn't just sitting on the money. Wolfspeed plans to allocate $192.2 million of the refund toward retiring approximately $175 million of outstanding debt, with the remaining funds earmarked for general corporate purposes. It's a sensible move that reduces interest obligations while maintaining financial flexibility.

With this infusion, Wolfspeed's cash balance now sits at approximately $1.5 billion. That's serious liquidity for a company navigating the capital-intensive world of semiconductor manufacturing.

Strategic Expansion Beyond EVs

The timing matters because Wolfspeed is actively working to diversify its power device revenue streams. Beyond the electric vehicle market, the company is pushing into AI data centers, aerospace and defense, and industrial and energy applications. These sectors represent significant growth opportunities for silicon carbide technology, which offers superior performance in high-power, high-temperature applications.

This isn't Wolfspeed's first rodeo with these tax credits either. In fiscal 2025, the company received $186.5 million in cash tax refunds related to its fiscal year 2023 and fiscal year 2024 federal tax filings.

"This substantial cash infusion further strengthens our liquidity position at a critical phase in Wolfspeed's strategic evolution," said Wolfspeed CFO Gregor Van Issum. "It provides us with the financial agility to support long-term growth, manage our capital structure responsibly, and continue driving innovation across the silicon carbide value chain for our customers."

Technical Picture

From a technical standpoint, Wolfspeed is trading approximately 3.7% below its 50-day moving average of $22.02, suggesting a short-term pullback. However, zoom out and the picture changes dramatically—the stock is trading a remarkable 180.4% above its 200-day moving average of $7.56, highlighting a strong long-term bullish trend. The relative strength index sits at 51.42, indicating neutral momentum that could suggest consolidation before the next directional move.

Shares were up 5.13%, trading at $21.52 at the time of publication.

Back to News

Wolfspeed Shares Jump After Receiving Nearly $700 Million IRS Tax Refund

MarketDash Editorial Team
7 days ago
Wolfspeed received $698.6 million from the IRS under the Advanced Manufacturing Investment Credit, boosting its cash balance to $1.5 billion and giving it financial flexibility to pay down debt and support its expansion beyond electric vehicles into AI data centers and aerospace markets.

Wolfspeed, Inc. (WOLF) shares rallied Monday after the silicon carbide technology company announced it received a massive cash injection from the IRS that significantly strengthens its financial position.

The Tax Refund Details

Wolfspeed pulled in $698.6 million in cash tax refunds from the IRS's Advanced Manufacturing Investment Credit. This represents a major chunk of the approximately $1 billion in Section 48D cash tax refunds the company has accrued from the credit program, which incentivizes domestic semiconductor manufacturing.

The company isn't just sitting on the money. Wolfspeed plans to allocate $192.2 million of the refund toward retiring approximately $175 million of outstanding debt, with the remaining funds earmarked for general corporate purposes. It's a sensible move that reduces interest obligations while maintaining financial flexibility.

With this infusion, Wolfspeed's cash balance now sits at approximately $1.5 billion. That's serious liquidity for a company navigating the capital-intensive world of semiconductor manufacturing.

Strategic Expansion Beyond EVs

The timing matters because Wolfspeed is actively working to diversify its power device revenue streams. Beyond the electric vehicle market, the company is pushing into AI data centers, aerospace and defense, and industrial and energy applications. These sectors represent significant growth opportunities for silicon carbide technology, which offers superior performance in high-power, high-temperature applications.

This isn't Wolfspeed's first rodeo with these tax credits either. In fiscal 2025, the company received $186.5 million in cash tax refunds related to its fiscal year 2023 and fiscal year 2024 federal tax filings.

"This substantial cash infusion further strengthens our liquidity position at a critical phase in Wolfspeed's strategic evolution," said Wolfspeed CFO Gregor Van Issum. "It provides us with the financial agility to support long-term growth, manage our capital structure responsibly, and continue driving innovation across the silicon carbide value chain for our customers."

Technical Picture

From a technical standpoint, Wolfspeed is trading approximately 3.7% below its 50-day moving average of $22.02, suggesting a short-term pullback. However, zoom out and the picture changes dramatically—the stock is trading a remarkable 180.4% above its 200-day moving average of $7.56, highlighting a strong long-term bullish trend. The relative strength index sits at 51.42, indicating neutral momentum that could suggest consolidation before the next directional move.

Shares were up 5.13%, trading at $21.52 at the time of publication.