Shares of Wolfspeed Inc. (WOLF) surged 5.17% on Thursday, January 30, 2025, during the pre-market trading session. The semiconductor company's stock rallied after reporting better-than-expected second-quarter fiscal 2025 earnings results and a promising outlook focused on long-term growth.

For the second quarter, Wolfspeed posted revenue of $180.5 million, slightly exceeding analysts' estimates of $179.9 million. The company also reported a smaller net loss per share of $0.95, compared to the expected loss of $1.02 per share. This strong performance was driven by Wolfspeed's competitive advantages, including being the first to begin commercial production of 200-millimeter silicon carbide (SiC) wafers, which are expected to significantly reduce production costs.

Looking ahead, Wolfspeed provided guidance for the third quarter of fiscal 2025, with expected revenue in the range of $170 million to $200 million, in line with analysts' average estimate of $193.6 million. The company 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 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.