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Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (10396)7/12/2021 9:17:11 PM
From: Lou Weed  Respond to of 10634
Cree/Wolfspeed's disadvantage is that they are truly a one-trick pony now. With LED gone, they are completely relying on Materials, Power and RF components for revenue. Their advantage in Materials (that accounts for more than 80% of their revenues in 2020) is being slowly eroded by II-VI and a plethora of Chinese players are on the horizon. I believe Greg Lowe is prettying them up to be acquired but the only problem is their valuation is so prohibitive right now.......

To: slacker711 who wrote (10396)7/13/2021 7:36:27 PM
From: EvanG  Respond to of 10634
STM has guided for $1 billion in SiC revenue in 2025 which will be substantially less than 10% of their total revenue. I have no doubt that they will beat that number handily but the vast majority of their capex is going to non SiC projects.

Access to capital is never a bad problem, mix will shift over time. As revenue scales OPEX does not scale linearly with it. Purchasing power also improves. A bigger company drives cost efficiencies that drives better product pricing which drives better revenue. All of those other product lines become very important to their SiC development.

It is an advantage to some of these companies for SiC to be high CAPEX, very process intensive with complicated chips. Creates barriers to entry. The size of a company and the efficiency it can generate as a result can also be a barrier.