Wolfspeed is targeting the booming power demands of AI and the energy transition, launching two 3.3 kV SiC power module families that caused its stock to jump nearly 19 percent.
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Wolfspeed Surges 19% After Launching New 3.3 kV AI Power Modules
Wolfspeed Inc. (NYSE: WOLF) stock climbed 18.56 percent to close at $69.50 after launching two new 3.3 kV silicon carbide (SiC) power module families, directly targeting the surging power and efficiency requirements of artificial intelligence data centers and renewable energy infrastructure. The move places the semiconductor firm in direct competition to address the growing energy constraints faced by high-performance computing.
"We are giving engineers the tools to build the grid of tomorrow, today — and only by working together can we successfully address the surging demand for power and unlock the full potential of AI and electrification," Guy Moxey, vice president of Wolfspeed's Industrial & Energy business, said in a statement.
The Durham, N.C.-based company introduced a high-power half-bridge baseplate module for demanding applications like solar and grid-scale storage, and a scalable full-bridge baseplate-less module for modular systems like solid-state transformers (SSTs). According to the company, the baseplate module delivers a 42 percent improvement in switching losses over competing SiC solutions, while the baseplate-less Wolfspeed WolfPACK® module enables SST systems to achieve a footprint reduction of over 50 percent compared to traditional equipment. Amperesand, a manufacturer of medium-voltage SSTs, was named as a customer using the new 3.3 kV solution.
The launch provides a critical test for Wolfspeed, as it positions its advanced SiC technology to capture a larger share of the rapidly expanding market for power electronics. For investors, the stock's 18.56% gain reflects optimism that the new products can accelerate revenue, but the company remains unprofitable. The stock trades at a significant premium, nearly 75 percent above the consensus analyst price target of $40, signaling that the market has high expectations for execution.
A Strategic Pivot to Power-Hungry Markets
The introduction of the 3.3 kV modules marks a clear strategic focus on the most power-constrained segments of the economy. As AI models become more complex and data centers scale, electricity demand and cooling requirements have become a primary limiting factor. Wolfspeed's SiC technology, which is inherently more efficient at high voltages and temperatures than traditional silicon, is designed to address this bottleneck. Brian Dow, CEO of Amperesand, noted that the technology enables "maximum reliability for high variability AI factory loads" and unlocks previously unachievable power density. This pivot aligns Wolfspeed's product roadmap directly with the multi-trillion-dollar buildout of AI and clean energy infrastructure.
Investor Outlook and Financial Realities
Despite the promising technology, Wolfspeed's financial picture presents a mixed view for investors. The company narrowed its net loss by 58 percent year-over-year to $119.9 million in the quarter ending March 2026, on revenues that declined 18.9 percent to $150.2 million. While the stock has shown very strong recent momentum—gaining over 150 percent in the last 30 days—it remains highly volatile. Analysts do not expect the company to achieve profitability within the next three years, making the successful adoption of its new 3.3 kV modules a critical factor for its long-term growth trajectory and its ability to justify a valuation that far exceeds current Wall Street targets.
This article is for informational purposes only and does not constitute investment advice.
[1] Wolfspeed Aims At AI And Renewable Growth With New Power Modules[2] Texas Instruments Is at an All-Time High. Buy the Stock, Says This Analyst.[3] Wolfspeed Introduces New 3.3 kV SiC Power Modules in Two Industry-Standard Footprints to Address the Surging Demand for Energy[4] Wolfspeed (WOLF) Climbs 18% on Launch of Power Modules for AI
