Shares of Wolfspeed Inc. (WOLF) plummeted 29.32% in pre-market trading on Friday following a series of negative developments, including disappointing third-quarter results, concerns about the company's future viability, and multiple analyst downgrades.

The silicon carbide chipmaker reported Q3 revenue of $185.4 million, representing a 7.62% decrease from the same period last year and slightly missing analyst estimates. While the company's adjusted loss per share of $0.72 beat expectations, Wolfspeed posted a staggering net loss of $285.5 million for the quarter. Adding to investor concerns, the company forecasted 2026 revenue of $850 million, significantly below analysts' estimates of $922.8 million.

In a startling development, Wolfspeed's departing CFO Neill Reynolds stated on the post-earnings call that the company may need to pursue in-court options to renegotiate its debt. The company also indicated that "going concern" language would be added to its upcoming quarterly filing, raising serious doubts about Wolfspeed's financial stability. These statements prompted immediate reactions from Wall Street, with JPMorgan downgrading the stock to "underweight" from "neutral" and Citigroup cutting its rating to "sell" from "neutral" while slashing its price target to $3 from $7.

Compounding these issues, Wolfspeed faces uncertainty regarding federal funding under the CHIPS Act for its North Carolina plant, as well as challenges related to slower-than-expected EV adoption and broader macroeconomic headwinds. The company announced management changes and board additions in an attempt to address these challenges, but investors remain skeptical about Wolfspeed's turnaround prospects.