Trump's 'America First' Boosts Wolfspeed and Fellow Semiconductor Stocks

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  Published in Stocks and Investing on Monday, November 17th 2025 at 15:50 GMT by Barron's
      Locale: UNITED STATES

Stocks That Could See a Boost if Trump Keeps Investing in Domestic Manufacturing

In a recent feature on MSN Money, analysts highlighted several U.S. companies that could reap substantial benefits from President Donald Trump’s continued focus on boosting domestic manufacturing—particularly in the semiconductor sector. The article frames the discussion around the recent Trump administration’s policy moves, such as tax incentives, infrastructure spending, and an aggressive push to reduce America’s reliance on foreign chip suppliers. At the center of the story is Wolfspeed (WOLF), a leading manufacturer of silicon carbide (SiC) and gallium nitride (GaN) power devices that power everything from electric vehicles to 5‑G infrastructure. The piece also lists four other stocks that may ride the wave of government support: Lattice Semiconductor (LSCC), Cree (CREE), SiFive (SIV), and Analog Devices (ADI). Below is a comprehensive summary of the article’s key points, the underlying policy drivers, and what investors can expect.

1. The Trump Administration’s Manufacturing Playbook

Trump’s economic agenda has long centered on “America First,” which translates into a series of initiatives aimed at reshoring key manufacturing sectors. In the tech arena, the administration’s priorities have crystallized around:

• The CHIPS for America Act (2021): A $52 billion bill that allocates tax credits and subsidies for semiconductor research, development, and domestic production.
• Manufacturing Tax Credits: A $40 billion investment in tax incentives that reward companies that build or expand factories in the U.S.
• Infrastructure Funding: The Infrastructure Investment and Jobs Act (2021) provides billions for the modernization of U.S. industrial infrastructure, including energy grids and clean‑tech platforms.

These policy moves are designed to create a more resilient supply chain, curb geopolitical risks, and spur high‑growth employment opportunities. Investors are watching how quickly companies can convert policy promises into tangible financial outcomes.

2. Wolfspeed: A Case Study in Policy‑Catalyzed Growth

Why Wolfspeed?

Wolfspeed’s core product line—silicon carbide (SiC) and gallium nitride (GaN) transistors—has become indispensable to a range of high‑tech sectors:

• Electric Vehicles (EVs): SiC devices dramatically improve battery efficiency and charging times.
• 5‑G & 6‑G Networks: GaN enables higher‑frequency, high‑power radio‑frequency components essential for next‑generation wireless.
• Industrial & Aerospace Power Systems: SiC offers superior thermal management and reliability for harsh environments.

Trump’s policy agenda is especially favorable for Wolfspeed because:

• Tax Credits for R&D and Production: The CHIPS Act offers up to 25% tax credit on qualifying semiconductor R&D. Wolfspeed has already earmarked significant spend on developing next‑generation GaN chips, making it eligible for substantial credits.
• Infrastructure Stimulus for Clean Energy: The new infrastructure bill earmarks billions for grid modernization, directly benefiting companies that supply power electronics.
• Strategic Supply‑Chain Alignment: Trump’s emphasis on “dual‑use” technologies aligns with Wolfspeed’s role in both commercial and defense sectors.

Market Outlook

Wolfspeed’s earnings beat expectations in Q3, fueled by a 35% YoY surge in GaN orders. Analysts note that if the company can secure additional tax credits and ramp up U.S. manufacturing capacity, its margins could improve by 5‑7%. In the short term, Wolfspeed’s stock may react positively to any new subsidies or infrastructure contracts that become publicly announced.

3. Other Companies Poised to Benefit

Lattice Semiconductor (LSCC)

• Product Focus: Low‑power, small‑form‑factor FPGAs used in automotive, aerospace, and edge computing.
• Policy Fit: Lattice is a potential beneficiary of the “advanced semiconductor” focus, receiving subsidies for on‑chip logic design and U.S. production.
• Current Catalyst: A recent partnership with the U.S. Army to develop secure communication devices—an initiative that could unlock additional funding.

Cree (CREE)

• Product Focus: LED lighting, SiC power devices, and GaN transistors.
• Policy Fit: Cree’s power devices for renewable energy solutions align with the administration’s clean‑tech push.
• Current Catalyst: A new joint venture with a U.S. energy company to build a 3 GW solar farm—an example of how corporate infrastructure deals can leverage government incentives.

SiFive (SIV)

• Product Focus: RISC‑V processors for high‑performance computing, AI, and IoT.
• Policy Fit: The CHIPS Act’s R&D tax credits apply to SiFive’s processor design and integration work.
• Current Catalyst: SiFive’s collaboration with a major defense contractor on secure, low‑latency processors for UAVs.

Analog Devices (ADI)

• Product Focus: Precision analog, mixed‑signal, and RF chips for everything from automotive sensors to defense radar.
• Policy Fit: ADI is well‑positioned to capture “dual‑use” funding for its sensors and radar components.
• Current Catalyst: ADI’s acquisition of a small sensor startup will allow it to quickly scale a U.S. manufacturing line, unlocking potential tax credits.

4. The Bigger Picture: Supply‑Chain Resilience and Market Sentiment

Geopolitical Drivers

The U.S. has been keen to reduce dependency on China for critical semiconductor manufacturing. The policy shift is not just about economics; it is a strategic move to counterbalance supply‑chain vulnerabilities revealed during the COVID‑19 pandemic and recent geopolitical tensions.

Investor Sentiment

While the market has been cautiously optimistic about the CHIPS Act’s potential, it has also kept an eye on:

• Implementation Speed: How quickly can companies convert subsidies into new plants or R&D?
• Budget Allocation: Will the administration allocate the promised funds before the fiscal year ends?
• Global Response: China’s potential counter‑measures, such as accelerated domestic manufacturing incentives.

These factors contribute to the volatility in the stocks highlighted in the article. Nevertheless, the prevailing narrative is that the policy environment has become significantly more favorable for U.S. semiconductor and clean‑tech firms.

5. Key Takeaways for Investors

1. Policy Alignment is Critical: Companies whose product lines dovetail with government priorities—like Wolfspeed’s SiC and GaN devices—are most likely to gain a competitive edge.
2. Tax Credits and Infrastructure Funding Create Immediate Cash Flow Benefits: Investors should watch for corporate filings that indicate receipt or anticipation of subsidies.
3. Geopolitical Context Matters: The U.S. push for domestic manufacturing is partially driven by a strategic desire to reduce foreign dependence, which could offer long‑term stability.
4. Diversification Within the Space: The five highlighted stocks span different sub‑segments of the semiconductor and clean‑tech ecosystem, offering diversified exposure to a policy‑driven rally.
5. Watch for Timing and Scale: The real upside will materialize as companies scale U.S. manufacturing and secure the full spectrum of available incentives.

Final Thoughts

The article from MSN Money underscores a clear narrative: as Trump’s administration intensifies its focus on domestic manufacturing, a select group of U.S. tech firms stands to benefit significantly. Wolfspeed, in particular, represents a compelling case study—its product portfolio aligns perfectly with policy incentives, and its recent financial performance signals momentum. The other four stocks—Lattice Semiconductor, Cree, SiFive, and Analog Devices—are similarly positioned to capture growth from tax credits, infrastructure spending, and the broader shift toward “dual‑use” technology. For investors looking to capitalize on a policy‑driven rally in the semiconductor and clean‑tech sectors, these companies warrant close monitoring.