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2. Wolfspeed, Inc. (NYSE:WOLF)

Wolfspeed is a manufacturer of equipment for the semiconductor industry, specializing in silicon carbide wafers and GaN epitaxial layers on these wafers. The GaN layer significantly improved the device performance as compared to just using traditional silicon. The stock is down 60% in a month but offers great value as the median analyst price target expects the stock to double from here on.

The reason for the stock’s recent downfall was speculation that the company may not receive any more funding under the CHIPS Act. This funding is not only crucial for the company’s capital-intensive needs but is also required to keep its balance sheet in shape.

The company’s management was quick to come up with alternate plans if the CHIPS Act funding is stopped. For instance, it received $192.1 million in tax refunds recently, which should help it with the financial requirements. The company expects to receive $600 million in FY26 in the form of tax refunds.

The company continues to look at alternative avenues of funding in case the Trump administration removes it as a CHIPS Act beneficiary:

“Wolfspeed continues to explore alternatives with regard to its convertible notes, in partnership with its advisors, and remains in a dialogue with lenders, including Apollo and Renesas.”