Wolfspeed Shares Plunge 11.11% Amid CEO Change, Tax Credit Disappointment

Wolfspeed(WOLF) shares plummeted 11.11% today, marking a record low with an intraday decline of 15.23%.

Wolfspeed's stock has been under significant pressure recently due to several key factors. The company received a $192 million tax refund related to Section 48D tax credits for fiscal 2023 and 2024, which initially seemed like a positive development. However, this news was accompanied by a 52% drop in share price, indicating that investors may have been disappointed with the overall financial outlook or other underlying issues.

Another major event impacting Wolfspeed's stock was the announcement of a new CEO, which led to a 49% stock plummet last month. This change in leadership suggests significant shifts within the company, potentially causing investor uncertainty and contributing to the stock's decline.

Analyst actions have also played a role in Wolfspeed's recent performance. Goldman Sachs analyst Brian K. Lee maintained a buy rating on the stock but adjusted the target price from $15 to $8, reflecting a more cautious outlook. This adjustment likely influenced investor sentiment, further contributing to the stock's downward trend.

Additionally, uncertainty over potential funding from the CHIPS Act has added to the stock's volatility. The CHIPS Act, aimed at boosting domestic semiconductor manufacturing, has been a source of hope for many tech companies. However, the lack of clarity on Wolfspeed's eligibility for this funding has created additional uncertainty, further impacting the stock price.