Wolfspeed Stock Soars on Financing Deal with Pentagon -- Barrons.com

Dow Jones2026/10/07 21:53

By Al Root Shares of silicon carbide semiconductor maker Wolfspeed soared late Wednesday after announcing a financing deal with the Pentagon. Wolfspeed stock was up almost 24% at $38.80. Through Wednesday trading, shares were up 18% over the past 12 months, although shares were down more than 50% from a May 52-week high of more than $80. The company has received a conditional loan commitment from the Defense Department for $1.5 billion in long-term 30-year financing, contingent on producing silicon carbide materials and other power devices in America. The Defense Department will get warrants equivalent to 7.5% of Wolfspeed stock if and when the deal is executed. Most chips are made on silicon. Silicon carbide substrates are good for high-voltage applications such as data centers and electric vehicles. They also find their way into satellite technologies. The Defense Department has been investing heavily to boost domestic production of key materials. In July 2025, it provided MP Materials with capital, a price floor, and a guaranteed customer for MP's rare earth materials in a landmark deal. "Silicon carbide and gallium nitride have critical national security applications," said Wolfspeed CEO Robert Feurle in a news release. "With this financing, the company would be well positioned to not only continue to serve the [Department of War] but also expand its capabilities for the benefit of U.S. national security as a whole." The Trump administration has revived the use of Department of War as a secondary name for the DOD. Gallium nitride is another Wolfspeed product used in high-end electronics, including radars. The financing commitment is helpful. Wolfspeed isn't profitable yet, and it is spending heavily on facilities in North Carolina and New York. Capital spending is ramping down in 2026 as construction wraps up. Wolfspeed remains a relatively small company, with a market value of about $2 billion. Only three analysts cover the stock. All three rate shares Hold. Write to Al Root at allen.root@barrons.com. This c

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By Al Root

Shares of silicon carbide semiconductor maker Wolfspeed soared late Wednesday after announcing a financing deal with the Pentagon.

Wolfspeed stock was up almost 24% at $38.80. Through Wednesday trading, shares were up 18% over the past 12 months, although shares were down more than 50% from a May 52-week high of more than $80.

The company has received a conditional loan commitment from the Defense Department for $1.5 billion in long-term 30-year financing, contingent on producing silicon carbide materials and other power devices in America.

The Defense Department will get warrants equivalent to 7.5% of Wolfspeed stock if and when the deal is executed.

Most chips are made on silicon. Silicon carbide substrates are good for high-voltage applications such as data centers and electric vehicles. They also find their way into satellite technologies.

The Defense Department has been investing heavily to boost domestic production of key materials. In July 2025, it provided MP Materials with capital, a price floor, and a guaranteed customer for MP's rare earth materials in a landmark deal.

"Silicon carbide and gallium nitride have critical national security applications," said Wolfspeed CEO Robert Feurle in a news release. "With this financing, the company would be well positioned to not only continue to serve the [Department of War] but also expand its capabilities for the benefit of U.S. national security as a whole."

The Trump administration has revived the use of Department of War as a secondary name for the DOD.

Gallium nitride is another Wolfspeed product used in high-end electronics, including radars.

The financing commitment is helpful. Wolfspeed isn't profitable yet, and it is spending heavily on facilities in North Carolina and New York. Capital spending is ramping down in 2026 as construction wraps up.

Wolfspeed remains a relatively small company, with a market value of about $2 billion. Only three analysts cover the stock. All three rate shares Hold.

Write to Al Root at allen.root@barrons.com.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 07, 2026 17:53 ET (21:53 GMT)

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Reuters, October 8 – In September, Japanese investors became net sellers of foreign bonds for the second consecutive month, driven by rising borrowing costs in the US and Europe, as well as increasingly attractive domestic yields that prompted them to withdraw from overseas bond markets. Data released by Japan's Ministry of Finance on Tuesday showed that Japanese investors were net sellers of 969 billion yen ($613 million) in foreign bonds last month, which was lower than the previous month's net sales of 1.16 trillion yen. They net sold 1.43 trillion yen in long-term foreign currency bonds—a six-month high—while purchasing about 457 billion yen in short-term notes. The increase in Japanese interest rates is beginning to attract some of the country's vast overseas investments back home, marking a significant shift in global capital flows. Year to date, Japanese investors have net sold about 5.08 trillion yen in foreign bonds, the highest since 2022. This capital outflow could support the yen’s exchange rate and put pressure on bond markets that have long considered Japan a major buyer. Soaring energy costs have heightened inflation concerns, prompting the Federal Reserve (FED) and the European Central Bank to raise interest rates in September, which has further pressured global bond markets. Earlier this week, Japan's benchmark 10-year government bond yield rose to 3.122%, its highest in 30 years, increasing the appeal of domestic bonds. In September, led by the Bank of Japan, Japanese institutions sold a net 2.49 trillion yen in long-term foreign bonds, a seven-month high. Life insurance companies and investment trust managers also recorded net sales of 288.6 billion yen and 200.1 billion yen respectively. However, trust accounts net purchased 1.2 trillion yen in long-term foreign currency bonds, highlighting divergent investment strategies among Japanese institutional investors. Another Bank of Japan report showed that in the first eight months of this year, Japanese investors net sold 4.74 trillion yen in US Treasuries, while net purchasing 355.85 billion yen in European bonds. Within Europe, Japanese investors net bought 329.82 billion yen in Italian bonds, while net selling 208.59 billion yen and 94.25 billion yen in French and German bonds, respectively. (1 US dollar = 158.1400 yen)

路透社•2026/10/08 05:26