Chipmaker Wolfspeed raises going concern doubts; shares drop

Shares of chipmaker Wolfspeed WOLF.N fall 20.1% to $3.54 premarket

WOLF's departing CFO Neill Reynolds said on post-earnings call that co may need to pursue in-court options to renegotiate its debt and that "going concern" language would be added to the upcoming quarterly filing

Co started including the risk of "substantial doubt about the company's ability to continue as a going concern" in the 8-K

"It appears the probability of bankruptcy has increased substantially," Charter Equity Research says

J.P.Morgan downgrades rating to "underweight" from "neutral"; says WOLF's path to positive operating cash flow in FY26 is clouded by macro uncertainty, including auto tariffs, CHIPS Act and EV policy risks, rising competition, recent management changes

Citigroup downgrades rating to "sell" from "neutral" and cuts PT to $3 from $7

Co on Thurs reported Q3 rev of $185.4 mln, a decline of 7.6% from a year ago

Avg rating of 13 analysts covering WOLF is "hold"

As of last close, stock down ~33% this year