Why Wolfspeed Stock Plunged 27.4% in August

Shares of (NYSE: WOLF) dropped 27.4% in August, according to data from S&P Global Market Intelligence .

The semiconductor company, in the midst of a large-scale transition to mass-producing silicon carbide (SiC) power devices, fell in the month following a somewhat disappointing earnings report.

In addition, the company isn't profitable, and has had to raise billions of dollars to fund its ambitious buildout of silicon carbide factories. Silicon carbide is more heat- and power-efficient than traditional silicon, and it is thought to have huge growth potential in electric vehicles and with the energy transition. 

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Source Fool.com