Wolfspeed Inc. (WOLF) saw a 5% surge in its stock price during pre-market trading on Thursday, January 30, 2025. The semiconductor company's shares rallied following its better-than-expected second-quarter fiscal 2025 earnings report and promising outlook.

During the earnings call, Wolfspeed reported revenue of $180.5 million for the second quarter, slightly exceeding analysts' estimates of $179.9 million. The company also posted a smaller-than-expected net loss per share of $0.95, compared to analysts' expectations of a loss of $1.02 per share.

Looking ahead, Wolfspeed provided guidance for the third quarter of fiscal 2025, with expected revenue in the range of $170 million to $200 million, which is in line with analysts' average estimate of $193.6 million. The company also forecasted an adjusted loss per share between $0.88 and $0.76, compared to analysts' expectations of a loss of $0.86 per share.

During the earnings call, Wolfspeed's management outlined several key priorities for the company, including dramatically improving financial performance, strengthening the balance sheet, and raising cost-effective capital to support long-term growth plans. The company emphasized its focus on executing these priorities in the immediate term to accelerate its path to profitability.

Wolfspeed also highlighted its competitive advantages, such as being the first to begin commercial production of 200-millimeter silicon carbide wafers, which are expected to significantly reduce die costs. Additionally, the company expressed optimism about potential government support through the CHIPS Act funding, which could provide access to up to $2.5 billion in total funding for capacity expansion.