Wolfspeed Inc. (WOLF) saw its shares plummet 18.51% in the 24-hour period following the release of its third-quarter earnings report. The semiconductor company's mixed results and disappointing outlook severely disappointed investors, leading to a significant stock price decline.

The company reported quarterly revenue of $185.4 million, falling short of the analyst consensus estimate of $185.9 million. This represents a 7.62% decrease compared to the same period last year. Despite beating expectations with an adjusted loss per share of $0.72, Wolfspeed's bottom line raised serious concerns. The company reported a staggering net loss of $285.5 million for the quarter, with an adjusted gross margin of merely 2%, indicating significant pressure on the company's profitability.

Adding to investor worries, Wolfspeed forecasted 2026 revenue of $850 million, well below analysts' estimates of $958.7 million. The company cited slower-than-expected EV adoption and broader macroeconomic challenges as key factors impacting demand for its silicon carbide chips. These headwinds, combined with high interest rates and rising capital costs, have led to delayed product launches by customers and weakened order activity in the industrial and energy sectors. The uncertain future of federal funding under the CHIPS Act for Wolfspeed's North Carolina plant has further complicated the company's growth prospects, contributing to the sharp decline in investor confidence.