Wolfspeed Emerges from Bankruptcy with 34% Stock Surge After Debt Restructuring

Wolfspeed shares skyrocketed 34% to $29.63 as the silicon carbide chipmaker exited Chapter 11 bankruptcy with a radically improved balance sheet. The company slashed total debt by 70% and reduced annual cash interest expenses by 60%, freeing capital for expansion in electric vehicle and renewable energy markets.

A governance overhaul accompanied the financial restructuring, with a new CFO and five fresh directors joining the board. While legacy shareholders saw their holdings diluted to less than 1%, creditors converted debt into equity—a trade-off that secured the company's future despite punishing existing investors.

The rally reflects market approval of Wolfspeed's ability to navigate semiconductor sector headwinds, including trade policy shifts and demand fluctuations. Its silicon carbide technology remains strategically positioned for growth in power electronics applications.