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.
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Who’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