Wolfspeed's public relations nightmare may be over with the biggest conditional loan ever committed by the Department of WAR.
$1.5B for a recently bankrupt money laundering scheme claiming to build critical EV and renewables infrastructure. Sure, electrified vehicles may have just crossed 50% of sales globally, but most Americans don't trust things you can't burn for energy.
AI doomers Citrini Research, the most popular finance substack, recently claimed WOLF is actually a dragon AND crouching tiger. They made WOLF a rare, single stock highlight at \~54$. Something about 800V power, 10kV chips, SSTs, 300mm interposers, heat spreaders, optical interconnects, fight milk, blah blah..
Turns out the same chips used by EVs are going into propulsion systems of things the military finds useful: ground transport, ships, drones, hybrid aircraft and satellites. WOLF's products are also needed for advanced interceptors, next gen radar, electronic warfare, and directed energy weapons. War stuff might save a company originally marketed for EVs and renewables.
Long on WOLF, Boko Haram, and National Defense (WAR).
Bonus Hype: Don't be surprised when the Department of Energy also throws money away on this company. The grid is getting more distributed and complex as the transformer shortage is getting worse. High voltage semiconductors are becoming more valuable throughout economy.