Why Wolfspeed Stock Is Plunging Over 17% In Premarket

• Wolfspeed emerged from Chapter 11 bankruptcy in late September.
• The company attributed the weak guidance to pushed forward orders and ongoing market softness
• CEO Robert Fuerle said the company was advancing into high-growth applications like artificial intelligence data centers, aerospace, and energy storage.

Shares of Woilfspeed, Inc. (WOLF) fell 17.40% in Thursday’s early premarket session as traders reacted to the semiconductor company’s mixed quarterly results and weak revenue guidance. 

The Durham, North Carolina-based company recently emerged from Chapter 11 bankruptcy following the completion of financial restructuring. Since relisting on Sept. 29, Wolfspeed stock has gained nearly 45%.

Wolfspeed’s Q1 Snapshot

The wide-bandgap semiconductor manufacturer, which focuses on silicon carbide and gallium nitride technology, reported an adjusted loss per share of $0.55 for the first quarter of the fiscal year 2026, narrower than the year-ago loss of $0.91 per share. According to Stocktwits, analysts, on average, expected a loss of $0.71 per share for the quarter.

Revenue rose merely 1% year over year (YoY) to $197 million, trailing the $198-million consensus. The company noted that its Mohawk Valley Fab generated $97 million in revenue, nearly doubling from a year ago.

Wolfspeed CEO Robert Feurle, who assumed the reins in late March, said, “Through our restructuring, we’ve strengthened the foundation of the company, emerging as a leaner organization with a focus on product innovation and market leadership.” “We’re building a stronger Wolfspeed that capitalizes on our world-class 200mm manufacturing footprint and leadership in silicon carbide.”

The CEO also said the company was advancing into high-growth applications like artificial intelligence (AI) data centers, aerospace, and energy storage.

What Retail Says About Wolf’s Q1 Print

Stocktwits retail traders continued to hold a ‘bearish’ disposition toward Wolfspeed stock, with message volume remaining at ‘extremely low’ levels.

A user is concerned about the need for capital raising due to the company's losses.

WolfSpeed’s Q2 Outlook

Looking ahead, Wolfspeed guided to second-quarter revenue of $150 million to $190 million, marking a sequential decline. The guidance was below the $203.73 consensus estimate.

The company attributed the predicament to accelerated customer purchases in the first quarter, as certain customers built up inventory by placing orders from the Durham fab before its planned year-end closure, and others pursued second sourcing of products during the pendency of Wolfspeed’s bankruptcy process. 

The company also noted ongoing softness in the market, which it expects will continue through fiscal 2026.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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