Wolfspeed Plunges 12.5% on Bankruptcy Filing Rumors

Wolfspeed's stock experienced a significant drop of 12.5% in pre-market trading on May 22, 2025, as investors reacted to the news that the company is preparing to file for bankruptcy within weeks.

Wolfspeed, a prominent semiconductor supplier, has been facing severe financial challenges. The company's stock plummeted nearly 70% following reports that it is preparing to file for Chapter 11 bankruptcy. This move comes after the company rejected a previous restructuring plan, leaving creditors with limited options.

The news of Wolfspeed's potential bankruptcy filing has sent shockwaves through the market, as investors grapple with the implications of the company's financial distress. The semiconductor industry, already facing headwinds, is now bracing for the potential fallout from Wolfspeed's struggles.

Despite the grim outlook, some analysts remain hopeful that Wolfspeed could still find a way to recover. However, the company's current situation underscores the challenges facing the semiconductor industry as a whole, and the need for companies to adapt to changing market conditions.