Wolfspeed Plunges 10.38% Amid Bankruptcy Filing

On July 2, 2025, Wolfspeed's stock price plummeted by 10.38% during pre-market trading, marking a significant downturn for the silicon carbide semiconductor company.

Wolfspeed's recent rally, which saw its stock price surge by nearly 75% in extended trading on June 30, was driven by the company's decision to file for Chapter 11 bankruptcy protection. This move is part of a broader restructuring effort aimed at cutting debt by approximately 70% and streamlining operations. The company anticipates emerging from bankruptcy by the end of the third quarter of 2025, subject to court approval and creditor support.

Despite the initial optimism surrounding the restructuring plan, analysts have expressed concerns about the sustainability of the rally. Technical indicators remain bearish, and restructuring risks are still unresolved. The recent drop in stock price suggests that investors may be reassessing the company's prospects in light of these uncertainties.

Wolfspeed's next steps will involve seeking court confirmation for the reorganization and developing post-bankruptcy strategies. The success of these efforts will be crucial in determining the company's future financial health and its ability to attract capital for growth.