Wolfspeed Shares Plunge on Disappointing Outlook

Wolfspeed US9778521024

Wolfspeed shares experienced a dramatic late-trading selloff, plummeting more than 18% after the semiconductor manufacturer issued a disappointing forecast for the current quarter. The company’s management warned that market weakness is expected to persist through 2026, casting a shadow over its recent emergence from bankruptcy protection.

The company’s second-quarter revenue projection of $150 to $190 million fell substantially below market experts’ expectations of $232 million. This gloomy outlook overshadowed the actual quarterly results, which showed revenue of $197 million and an adjusted loss of 55 cents per share.