Wolfspeed Stock Plunge Highlights Semiconductor Sector Challenges
Wolfspeed shares cratered 18% in pre-market trading after reporting disappointing fiscal first-quarter revenue and issuing a weak outlook. The silicon carbide semiconductor producer posted $196.8 million in Q1 FY26 sales, narrowly missing analyst estimates, while gross margins turned sharply negative amid production facility underutilization.
The company's struggles reflect broader headwinds in EV and renewable energy supply chains. CEO Robert Feurle emphasized operational realignment to address near-term challenges, even as the firm emerges from bankruptcy protection. Semiconductor stocks across adjacent sectors may face renewed scrutiny following this earnings miss.