Wolfspeed Stock Rallies Amid Restructuring Optimism, Initiates Chapter 11 Filing and Appoints New CFO

Wolfspeed Inc (WOLF) shares rose 7.89% to $1.43 on Monday, extending volatility from last week despite no new company-specific announcements. The rally follows strategic moves, including a pre-packaged Chapter 11 filing, which will erase $4.6 billion in debt and reduce annual cash interest payments by 60%. The company aims to emerge from restructuring by Q3.

Wolfspeed Inc. (WOLF) shares surged 7.89% to $1.43 on Monday, July 2, 2025, extending the volatility seen in the previous week despite no new company-specific announcements. The rally follows strategic moves by the company, including a pre-packaged Chapter 11 filing, which is set to erase approximately $4.6 billion in debt and reduce annual cash interest payments by 60% [4].

The restructuring plan is designed to accelerate Wolfspeed's path to profitability and is expected to be completed by the end of the third quarter. The company aims to continue normal operations and deliveries to its customers during this period. This financial overhaul comes as the demand for electric vehicle (EV) semiconductors is projected to grow significantly, with Wolfspeed's 200mm wafer technology providing a competitive edge [5].

The appointment of Gregor van Issum as the new Executive Vice President and Chief Financial Officer, effective September 1, is also seen as a significant strategic move. Van Issum's background in the semiconductor industry and experience at ams-OSRAM and NXP Semiconductors are expected to guide Wolfspeed through its transformation [4].

Wall Street analysts have set a one-year price target of $5.34 for Wolfspeed, indicating substantial upside potential. Despite the challenges of potential delisting and stiff competition from Chinese rivals, the company's restructuring efforts and new leadership are seen as positive steps towards recovery [2].

Investors should remain cautious, as Wolfspeed's stock will likely be delisted from the New York Stock Exchange (NYSE) and shift to over-the-counter (OTC) markets. Shares will likely experience significant sell-offs during this transition. Additionally, current shareholders will receive only between 3% and 5% of the value of the new corporate entity post-bankruptcy and restructuring [1].

References:
[1] https://www.fool.com/investing/2025/07/14/why-wolfspeed-stock-surged-this-week-despite-incre/
[2] https://www.gurufocus.com/news/2972644/wolfspeed-wolf-seeks-rebound-with-restructuring-and-new-cfo-appointment
[4] https://www.benzinga.com/trading-ideas/movers/25/07/46396808/wolfspeed-wolf-stock-resumes-rally-amid-restructuring-optimism
[5] https://www.ainvest.com/news/high-risk-high-reward-betting-wolfspeed-silicon-carbide-comeback-post-bankruptcy-2507/