Wolfspeed Stock: Bankruptcy Looms After Dramatic Crash

Wolfspeed shareholders faced devastating news as reports emerged that the semiconductor manufacturer is preparing to file for Chapter 11 bankruptcy protection. The announcement, first published by the Wall Street Journal on Tuesday, triggered panic selling that sent the stock plummeting by approximately 60% in after-hours trading. By Wednesday morning, May 21, 2025, the shares had fallen to just $1.44 in pre-market trading, representing a catastrophic 90% loss in value over the past twelve months. European exchanges responded by suspending trading of the stock as the crisis deepened.

Warning Signs Preceded Collapse

The impending insolvency follows months of deteriorating financial performance and mounting debt concerns. Earlier in May, management had already expressed doubts about the company's ability to continue operations, while simultaneously lowering revenue forecasts for 2026 to $850 million—well below analysts' expectations of $958.7 million. Recent quarterly results painted an equally grim picture, with revenue declining from $201 million to $185 million year-over-year, while losses expanded. This stark reality contrasts sharply with executive statements made just weeks ago claiming "significant progress" in strengthening the company's capital structure and path to profitability.

Ad

Fresh Wolfspeed information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Source StockWorld