--- title: "Wolfspeed's BorgWarner deal landed with 51.81% of its float short before the November 4 report" description: "Consensus expects a $1.98 per-share loss on essentially flat revenue on November 4; the figure both sides have priced differently is whether Wolfspeed's AI data-center growth finally gets a dollar number." publisher: "The Inference" section: "Chips" published: 2026-10-30T15:10:28.602Z modified: 2026-10-30T15:10:28.602Z canonical: https://theinference.org/article/wolfspeed-s-borgwarner-deal-landed-with-51-81-of-its-float-short-before-the-november-4-report language: en keywords: "Wolfspeed, Earnings, Short Interest, Silicon Carbide, Electric Vehicles" --- # Wolfspeed's BorgWarner deal landed with 51.81% of its float short before the November 4 report > Consensus expects a $1.98 per-share loss on essentially flat revenue on November 4; the figure both sides have priced differently is whether Wolfspeed's AI data-center growth finally gets a dollar number. [Wolfspeed](https://theinference.org/markets/companies/wolfspeed) reports fiscal first-quarter results after the market close on November 4, three trading days from now [2]. The silicon carbide maker from Durham, North Carolina enters the print with 51.81 percent of its float sold short, 27.4 million shares, [per Benzinga data published October 29](https://www.quiverquant.com/news/Wolfspeed+Stock+Short+Interest+Rises+to+51.81%25) [1]. That is a bet against a specific claim: Wolfspeed has said its [AI data-center revenue roughly doubled for three consecutive quarters in fiscal 2026](https://www.msn.com/en-us/news/other/ai-data-centers-join-evs-as-sic-demand-engines-in-infineon-wolfspeed-200mm-wafer-deal/ar-AA2fyoC0) [3], and the shorts are betting it never becomes a dollar figure on the income statement. It is also a crowded bet in an illiquid stock, and crowded bets pay out badly when the news is merely less bad than feared. ## The BorgWarner deal is the anchor the shorts did not price The short case was written before October 28, when Wolfspeed signed [a multiyear supply agreement](https://finance.yahoo.com/technology/articles/wolfspeed-powers-future-evs-multiyear-200500346.html) with BorgWarner, the drivetrain and power-electronics supplier [4]. The deal ties Wolfspeed's 1200-volt Gen 5 silicon carbide devices to BorgWarner's next-generation 800-volt EV inverter platform, and Wolfspeed says its manufacturing has fully transitioned to 200-millimeter wafers [4]. No revenue figure was disclosed [4]. The agreement does not rescue the quarter, but it weakens the thesis that Wolfspeed's new capacity has no committed customers behind it. The same week, Wolfspeed [commercially introduced transparent silicon carbide](https://www.marketscreener.com/news/wolfspeed-inc-commercially-introduces-transparent-silicon-carbide-technology-ce785fdad08cfe24) for AR optics and quantum computing, available now on 200-millimeter wafers with 300-millimeter technology in development [5]. Neither item is a dollar figure. Both are evidence that the 200-millimeter transition is finding buyers beyond the AI data-center story the shorts are shorting. ## The pessimism has numbers behind it In the quarter ended June 28, revenue fell 24 percent to $149.6 million with a net loss of $145.3 million [2]. Consensus for the quarter now due is [a loss of $1.98 per share on $149.9 million of revenue](https://www.ad-hoc-news.de/boerse/news/corporate-news/wolfspeed-signs-borgwarner-deal-november-4-results-for-wolfspeed-stock/70428421), essentially flat [2]. Susquehanna, an investment bank, cut its price target from $30 to $25 on October 21 while keeping a Neutral rating [2]. *Chart: **Revenue has fallen three quarters straight, to $149.6 million** Line chart of Wolfspeed quarterly revenue by calendar quarter from Q3 2024 to Q2 2026, falling from a $196.8 million peak to $149.6 million* *Wolfspeed quarterly revenue, $ millions, by calendar quarter; the June 2025 quarter is not on file. Source: Wolfspeed quarterly figures from its SEC filings, retrieved 30 October 2026 [8]. [8]* The company also carries a controlling-looking shareholder: [Renesas](https://theinference.org/markets/companies/renesas-electronics) Electronics, the Japanese chipmaker that funded Wolfspeed's 2025 exit from Chapter 11, took roughly 37 percent of the company in the restructuring [6]. That stake was worth about $292 million when Wolfspeed emerged [3]. [The Inference examined it on October 17](https://theinference.org/article/renesas-owns-37-of-wolfspeed-wolfspeed-s-newest-deal-feeds-its-rival-infineon), arguing Wolfspeed's newest wafer deal feeds its rival Infineon [6]. ## The institutions split the same way the float does In the most recent quarter, JPMorgan, Two Sigma and [BlackRock](https://theinference.org/markets/companies/blackrock) added heavily to their stakes while [Citigroup](https://theinference.org/markets/companies/citigroup) and [Morgan Stanley](https://theinference.org/markets/companies/morgan-stanley) sold most of theirs [1]. *Chart: **Institutions split the float: three funds added, two liquidated in Q2** Bar chart of Q2 2026 changes in institutional holdings of Wolfspeed: JPMorgan, Two Sigma and BlackRock added shares while Citigroup and Morgan Stanley sold.* *Change in institutional holdings of Wolfspeed shares in Q2 2026, per 13F filings compiled by Quiver Quantitative [1]. [1]* Both camps cannot be right about November 4. ## One line on the call settles the bet If AI data-center revenue appears as a disclosed dollar figure with growth, the shorts face a squeeze with more than four days of volume to cover [1]. If it stays a talking point, the longs own a story carried by [a conditional loan: up to $1.5 billion over 30 years](https://finance.yahoo.com/technology/articles/wolfspeed-announces-conditional-30-1-200500223.html) from the U.S [3][7]. Department of War, formerly the Department of Defense, announced October 7 [3][7]. None of it can be drawn yet; the conditions require Wolfspeed to raise $750 million in new equity, and the government would take warrants over up to 7.5 percent of the diluted equity [3]. Watch one line on the call: not the loss, but whether AI data-center revenue gets a number and a customer name. That is the test both sides have priced differently. ## Takeaway Wolfspeed reports November 4 with 51.81 percent of its float sold short; the BorgWarner deal weakens the bear case, but the print turns on whether AI data-center revenue finally gets a dollar figure. ## Sources 1. [Quiver Quantitative, "Wolfspeed Stock Short Interest Rises to 51.81%", October 29, 2026](https://www.quiverquant.com/news/Wolfspeed+Stock+Short+Interest+Rises+to+51.81%25) 2. [Ad Hoc News, "Wolfspeed signs BorgWarner deal: November 4 results for Wolfspeed stock", October 29, 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/wolfspeed-signs-borgwarner-deal-november-4-results-for-wolfspeed-stock/70428421) 3. [Tech Times via MSN, "AI data centers join EVs as SiC demand engines in Infineon-Wolfspeed 200mm wafer deal", October 19, 2026](https://www.msn.com/en-us/news/other/ai-data-centers-join-evs-as-sic-demand-engines-in-infineon-wolfspeed-200mm-wafer-deal/ar-AA2fyoC0) 4. [Business Wire via Yahoo Finance, "Wolfspeed Powers the Future of EVs with Multiyear Silicon Carbide Device Agreement", October 28, 2026](https://finance.yahoo.com/technology/articles/wolfspeed-powers-future-evs-multiyear-200500346.html) 5. [MarketScreener, "Wolfspeed, Inc. Commercially Introduces Transparent Silicon Carbide Technology", October 2026](https://www.marketscreener.com/news/wolfspeed-inc-commercially-introduces-transparent-silicon-carbide-technology-ce785fdad08cfe24) 6. [The Inference, "Renesas Owns 37% of Wolfspeed. Wolfspeed's Newest Deal Feeds Its Rival Infineon", October 17, 2026](/article/renesas-owns-37-of-wolfspeed-wolfspeed-s-newest-deal-feeds-its-rival-infineon) 7. [Business Wire via Yahoo Finance, "Wolfspeed Announces Conditional 30-Year, $1.5 Billion Loan Commitment from U.S. Department of War to Advance Domestic Wide Bandgap Supply Chain", October 7, 2026](https://finance.yahoo.com/technology/articles/wolfspeed-announces-conditional-30-1-200500223.html) 8. [Wolfspeed, quarterly figures from its SEC filings, retrieved 30 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000895419) --- Wolfspeed's BorgWarner deal landed with 51.81% of its float short before the November 4 report — The Inference. Canonical: https://theinference.org/article/wolfspeed-s-borgwarner-deal-landed-with-51-81-of-its-float-short-before-the-november-4-report