Wolfspeed stock demonstrated remarkable strength in pre-market trading Thursday, climbing more than 12% following a significant corporate development. This substantial gain comes as the company released its first comprehensive financial statements since completing a major restructuring and emerging from Chapter 11 bankruptcy protection on September 29, 2025.
Financial Rebirth Through Fresh-Start Accounting
The catalyst for Thursday’s trading activity emerged from Wolfspeed’s SEC Form 8-K filing, which contained unaudited pro-forma consolidation figures. This “fresh-start” accounting approach resets the company’s balance sheet to fair value, providing market participants with their first clear window into the reorganized entity’s financial standing.
Beyond the accounting transformation, operational developments are fueling investor enthusiasm. Accelerated production timelines combined with robust demand for silicon carbide chips—critical components for electric vehicles and energy infrastructure—are creating positive momentum. The ongoing scaling of 200mm wafer manufacturing promises enhanced cost efficiency as production volumes increase.
Remarkable Turnaround Journey
Wolfspeed’s current position represents a dramatic reversal from its June 30, 2025 filing for voluntary Chapter 11 protection. The restructuring process successfully eliminated approximately 70% of the company’s debt burden, establishing a solid foundation for renewed operations.
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Even the initial quarterly report following restructuring exceeded market expectations for both revenue and earnings per share. The newly released pro-forma financials now complete the picture, delivering the final component needed for comprehensive corporate reevaluation.
Strategic Outlook and Forward Guidance
Market attention now turns to whether Wolfspeed can maintain its current trajectory. Execution of the growth strategy across core markets—electric mobility, 5G technology, and renewable energy—will be critical for sustained recovery.
Despite anticipating continued market softness throughout fiscal year 2026, management has scheduled the unveiling of a comprehensive long-term strategy for the first half of the calendar year. The next significant corporate milestone will arrive with the Q2 FY2026 earnings release scheduled for late January 2026. Trading activity at Thursday’s market opening will reveal whether the pre-market surge represents sustained confidence or temporary enthusiasm.
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