Chipmaker Wolfspeed shares fall 23% as slowing EV sales hit annual revenue forecast
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Chipmaker Wolfspeed's shares fell 23% on Friday after it raised going-concern doubts and forecast weaker-than-expected annual revenue as it grapples with slowing electric-vehicle demand amid economic uncertainty. The company is squeezed between sluggish demand in the industrial and automotive markets, while rival Chinese manufacturers such as Sicc Co and EpiWorld International are gaining ground with inexpensive wafers, which are thin slices of semiconductor material used to make chips. Wolfspeed's customers are also grappling with tariff-induced uncertainty, with General Motors trimming its 2025 profit forecast, while Mercedes-Benz had pulled its earnings outlook for 2025. Its departing CFO Neill Reynolds said in a post-earnings call that the company may need to pursue in-court options to renegotiate its debt and that "going concern" language could be added to the quarterly filing. Wolfspeed included the risk of ...