By Brian Swint
Wolfspeed, the semiconductor firm that is trying to restructure its debt, looked set to rise for a third consecutive day Wednesday after a report that negotiations among creditors are happening.
Apollo Global Management, one of the biggest holders of Wolfspeed's $6.5 billion of debt, is in talks with investment bank Moelis about a restructuring, The Wall Street Journal reported Tuesday. The stock plunged 26% Friday after the company said that it faces the risk of not being able to continue as a "going concern" on its latest earnings call.
Wolfspeed rose 0.5% to $3.89 in Wednesday morning trading after gaining 16% on Tuesday and 1.8% Monday. Coming into the session, it was down almost 6% over the past five days and 42% lower in 2025.
Wolfspeed makes silicon-carbide technology for use in the automotive industry and would stand to benefit from renewed interest in chips and artificial intelligence. Its problem is that it was due for funding under President Joe Biden's CHIPS Act that now looks doubtful under President Donald Trump. It has been one of the most shorted stocks on the market this year--short selling is when traders bet that the price of shares will fall.
Other chip stocks were mixed on Wednesday. Big names Nvidia, AMD, and Arm were all rising, while others such as Broadcom and Intel were lower. Smaller chip maker Alpha & Omega was falling while peer Indie Semiconductor was rising. The Nasdaq was up 0.4%.
Wolfspeed didn't immediately respond to a request for comment early Wednesday.
Write to Brian Swint at brian.swint@barrons.com
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May 14, 2025 10:50 ET (14:50 GMT)
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