Wolfspeed reported that revenue from artificial intelligence data center applications more than doubled during fiscal 2026, providing a fast-growing end market for the silicon carbide company even as its broader financial results remained under significant pressure.
AI data center revenue increased more than 100% year-over-year during the fiscal year and rose approximately 20% sequentially during the fourth quarter.
Wolfspeed characterized AI data centers as a moderate but growing opportunity with significant long-term potential.
The company has moved to build a more dedicated presence around that market.
Wolfspeed launched a data center solutions team based in Silicon Valley to pursue opportunities in what it described as its fastest-growing end market. It also announced a strategic collaboration with LITEON Technology.
The AI growth stands in contrast to Wolfspeed’s overall financial position.
Fiscal fourth-quarter consolidated revenue was approximately $150 million. GAAP gross margin was negative 25%, while non-GAAP gross margin was negative 20%.
Wolfspeed reported a GAAP net loss of $145 million, adjusted EBITDA of negative $62 million and operating cash flow of negative $54 million.
The company ended the quarter with approximately $1.1 billion in cash, cash equivalents and short-term investments.
Wolfspeed is also taking steps to reduce leverage. During the fourth quarter, holders of $46 million of convertible notes voluntarily converted their debt into equity.
For the first quarter of fiscal 2027, Wolfspeed expects revenue of $140 million to $160 million and expects non-GAAP gross margin to remain negative.
Because Wolfspeed emerged from Chapter 11 and adopted fresh-start accounting in September 2025, the company has cautioned that financial statements following the effective date are not directly comparable with predecessor-period financial statements.
KEY QUOTE:
“We continued to expand our device business, highlighted by strong growth in AI data center applications and the launch of our fifth-generation SiC MOSFET.”
Robert Feurle, Chief Executive Officer of Wolfspeed
