SIG Maintains Hold Rating on Wolfspeed, Lowers Price Target

Shares of semiconductor and chip companies are trading lower as rising inflation concerns and elevated energy prices fuel expectations for further Fed rate hikes. Elevated borrowing costs could pressure semiconductor manufacturing and AI infrastructure investments while straining customer budgets. The Philadelphia Semiconductor Index (SOX) has declined for seven consecutive trading sessions, matching its longest losing streak since the 2008 financial crisis.

Wolfspeed Inks Agreement With Infineon Technologies For Long-Term Silicon Carbide Wafer Supply

Wolfspeed, Inc (NYSE: WOLF), a global leader in silicon carbide technology, and Infineon Technologies AG (OTCQX:IFNNY) today announced the expansion and extension of their existing long-term silicon carbide (SiC) wafer

Shares of semiconductor and chip companies are trading lower amid elevated expectations for Fed rate hikes due to broader inflation and energy challenges. Higher borrowing costs may affect the sector's ambitious capex plans while also creating risks for customers, which may be reflected in lower demand.