Wolfspeed Jumps 20% on $1.5B Defense Loan; Marvell Slips Despite Raised Targets

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Summary · why it matters

Wolfspeed shares surged 20% after the company received a $1.5B, 30-year conditional loan commitment from the U.S. Department of War to support domestic development and production of silicon carbide materials and wide-bandgap power devices. Wolfspeed plans to use the financing to expand domestic low- and high-voltage GaN production, advance GaN-on-SiC RF epitaxial wafer technology, and develop radiation-hardening capabilities for SiC and GaN products, with manufacturing facilities in North Carolina, New York, and Arkansas; the loan terms require Wolfspeed to issue the DoW VWAP-based warrants for up to 7.5% of its fully diluted equity as financing tranches are funded. Applied Digital rose 5% after the neocloud provider reported upbeat FQ1 with revenue up 322% Y/Y and adjusted EBITDA of $64.4M. Valneva fell 3% after the UK Medicines and Healthcare Products Regulatory Agency revoked the marketing authorization for Ixchiq, its chikungunya vaccine, citing safety concerns; the company said it will not appeal and expects minimal financial impact. Marvell Technology slipped 2% despite Citi, Needham, and Morgan Stanley raising their price targets to $275, $400, and $300, respectively, after the chipmaker's investor day, where it projected fiscal 2031 revenue of $70B-$90B and at least $30 in earnings per share, and raised its FY2028 revenue outlook to $20B from $18B.

Impact on assets 5

Artificial Intelligence▲
Applied Digital Corporation
APLD
▲ PositiveCapitalrelevance

Applied Digital rose 5% after reporting upbeat FQ1 with revenue up 322% Y/Y and adjusted EBITDA of $64.4M.

Marvell Technology Group Ltd
MRVL
± MixedCapitalrelevance

Marvell slipped 2% despite Citi, Needham, and Morgan Stanley raising price targets after its investor day with raised FY2028 revenue outlook.

Health Care▼
Valneva SE
VLA
▼ NegativeRegulationrelevance

Valneva fell 3% after the UK MHRA revoked the marketing authorization for its chikungunya vaccine Ixchiq over safety concerns.

Electrification & Mobility▲
Wolfspeed, Inc.
WOLF
▲ PositiveCapitalrelevance

Wolfspeed surged 20% after receiving a $1.5B, 30-year conditional loan commitment from the U.S. Department of War.

Consumer Discretionary▲