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Wolfspeed misses revenue forecasts and its shares fall after hours

Wolfspeed's revenue landed a third below forecasts, and Ionic Digital highlighted a shift to data-center leasing. Meanwhile, the Kospi fell 5.8 per cent amid a broader AI-share selloff.

Economics & Markets··Morning
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Revenue below expectations

The silicon carbide maker reported fiscal fourth-quarter revenue of 149.6 million dollars against forecasts near 223.55 million dollars. Data-center revenue tied to artificial intelligence more than doubled from a year earlier and rose about 20 per cent from the prior quarter. However, non-GAAP gross margin stayed negative at 19.9 per cent, which was an improvement of 70 basis points. The company guided first-quarter fiscal 2027 revenue to a range of 140 million to 160 million dollars. The stock fell about 7.5 per cent to 29.10 dollars in regular trading and a further 10.5 per cent afterwards.[1]

Transition to data centers

The former bitcoin miner reported second-quarter revenue of 48.6 million dollars, up about 31 per cent from a year earlier. Now, 90 per cent of its revenue comes from digital-infrastructure leasing and the rest from mining. Adjusted EBITDA reached 37.6 million dollars and gross margin widened to 93 per cent from 40 per cent a year earlier. A 234-megawatt lease at Ward County ramped up during this period. The company held 415.7 million dollars in cash and 2,882 bitcoin worth 168.7 million dollars, with no debt.[2]

Selloff in technology shares

Selling in AI-related shares carried through Asian trading. The Kospi dropped 5.8 per cent to close at 6,471.17, the Nikkei 225 went down 3.2 per cent to 65,326.42, and the Shanghai Composite fell 2.4 per cent to 3,894.42, while the Hang Seng added 0.1 per cent. European trading was steadier, with the DAX slipping 0.2 per cent and the FTSE 100 slipping 0.2 per cent, while the CAC 40 gained 0.3 per cent. In bonds, the ten-year Japanese government bond stayed near 2.9 per cent.[3]

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References

  1. News sourceInvesting.comWolfspeed's revenue lands a third below forecasts and the shares fall after hours↩
  2. News sourceTradingViewIonic Digital's revenue rises as data-center leasing replaces bitcoin mining↩
  3. News sourceBNN BloombergThe Kospi drops 5.8 per cent as investors sell AI shares across Asia↩
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