Wolfspeed surges 16% premarket on $1.5B Defense Department long-term financing deal
What happened
Wolfspeed surged 16% in premarket trading after landing a financing deal with the Pentagon. The Defense Department will provide the company with $1.5 billion in long-term, 30-year financing, contingent on Wolfspeed producing silicon carbide materials and other power devices in the United States. The deal was reported by Barron's in its Thursday stock-movers roundup as AI-related chip names (Intel, Marvell, Coherent, Corning, Dell, Micron) slid on rising bond yields and oil prices.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Wolfspeed (WOLF) — the direct beneficiary, up sharply
- U.S. power-semiconductor peers (ON Semiconductor, STMicro, Coherent) could see read-through interest in SiC exposure; defense suppliers broadly benefit from the Pentagon's willingness to fund domestic critical-materials production.
Sources