Wolfspeed’s stock could lose three-quarters of its value as bankruptcy fears build

Tech Stocks

The chip company is reportedly preparing to file for bankruptcy as it deals with mounting debt

Published: May 21, 2025 at 12:06 p.m. ET

Shares of Wolfspeed Inc. were down by more than 70% on Wednesday morning after a report indicated that the company is preparing to file for bankruptcy in the next few weeks.

The chip company is looking at a Chapter 11 plan after passing on other debt-restructuring proposals that would have taken place out of court, the Wall Street Journal reported, citing unnamed people familiar with the matter. The bankruptcy plan reportedly is supported by most of the company’s creditors.