Jim Cramer Says Do Not Buy These 5 Stocks

4. Wolfspeed Inc (NYSE:WOLF)

Number of Hedge Fund Investors: 34

Silicon Carbide power solutions company Wolfspeed Inc (NYSE:WOLF) ranks fourth in our list of the stocks Jim Cramer is bearish on. Earlier this month, Jim Cramer was asked about Wolfspeed Inc (NYSE:WOLF) during his Lightning Round program on CNBC. Cramer said Wolfspeed Inc (NYSE:WOLF) was “losing too much money” and that it was a “second-rate player.” The stock recently fell after Wolfspeed Inc (NYSE:WOLF) posted a weak guidance.

As of the end of the fourth quarter of 2023, 34 hedge funds in Insider Monkey’s database of funds reported owning stakes in Wolfspeed Inc (NYSE:WOLF), a significant jump from 24 hedge funds in the previous quarter.

ClearBridge Multi Cap Growth Strategy made the following comment about Wolfspeed, Inc. (NYSE:WOLF) in its third 2023 investor letter:

“Stock selection has also been a performance headwind in 2023 with a handful of holdings suffering declines amid rapidly rising interest rates. Wolfspeed, Inc. (NYSE:WOLF), a semiconductor company producing silicon carbide materials and power devices, was one of the primary detractors from Strategy performance in both the third quarter and year-to-date. The company has been hampered by execution issues as it invests to meet the growing demand for substrates and chips for electric vehicles. Additionally, Wolfspeed’s construction of a new silicon carbide fabrication plant in Upstate New York has taken longer than expected to reach critical mass. As one of just a handful of companies in the portfolio that are still not profitable today, Wolfspeed has required additional financing but has been able to secure $1.25 billion in capital from an Apollo-led group as well as $2 billion in upfront cash for a 10-year deal to supply Renesas Electronics with SiC wafers. We remain confident that the company’s addressable market opportunity remains sizable and look for ramping utilization to drive gross margin improvement over time.”