Institutional Confidence Builds in Wolfspeed’s Turnaround

A major institutional investor has significantly increased its stake in Wolfspeed, the silicon carbide specialist, lending substantial credibility to the company's ongoing restructuring efforts. This strategic move, disclosed during a holiday trading period, signals that professional market participants are viewing the stock's current valuation as a sustainable entry point for the anticipated recovery.

According to regulatory filings published on December 25, Vontobel Holding Ltd. executed a substantial purchase of Wolfspeed shares. The asset manager acquired an additional 103,282 shares, expanding its total position by 21.5 percent. This transaction brings Vontobel's total holdings to 582,845 shares, which carry a current market value of approximately $16.67 million. Such a deliberate accumulation by a sophisticated investor is widely interpreted as a vote of confidence in the firm's strategic direction.

Operational Milestones Underpin Recovery

The growing institutional interest is supported by two concrete operational developments from December 2025 that have fundamentally improved the company's outlook:

Should investors sell immediately? Or is it worth buying Wolfspeed?

• Substantial Tax Refund: On December 1, Wolfspeed received a $698.6 million refund from the IRS. This major liquidity injection has considerably strengthened its balance sheet and alleviated near-term funding pressures.
• Strategic Partnership Validation: The confirmation of a partnership with Toyota for future electric vehicle platforms on December 9 served as critical industrial validation, demonstrating that Wolfspeed's core technology remains competitive despite past financial volatility.

The combination of these events appears to have established a firm foundation for the share price, shifting market focus from survival concerns to execution and growth.

Share Price Stabilization Gains Traction

Trading at a shortened session close on December 24, Wolfspeed shares settled at $18.43, marking a modest gain of 0.49 percent. This level represents a notable stabilization when contrasted with the stock's perilous annual low of $0.39. While the gap to the 52-week high of $36.60 remains considerable, the acute panic that drove the steep decline earlier in the year has subsided. The market is now reassessing the company's prospects following the successful completion of key financial restructuring steps.

The strategic entry by Vontobel reflects an expectation that the operational turnaround will continue to progress through 2026. Investor attention is now turning to upcoming quarterly results, which must demonstrate whether the improved liquidity position is translating into greater operational efficiency and financial performance.