Wolfspeed Inc. rose 18% in premarket trading after soaring 96% in the previous trading day.

Wolfspeed shocked the stock market with a major leadership shake-up as it named Gregor Van Issum as its new Chief Financial Officer and Executive Vice President, effective September 1, 2025, as per a report.

Gregor Van Issum: A Veteran of Restructuring Joins Wolfspeed

Van Issum has more than 20 years of experience in transformational restructuring and strategic financing and will succeed Kevin Speirits, who served as interim CFO of the firm. He said that, "My priority will be providing Wolfspeed’s investors with transparency and clarity, especially during this transformative period".

He will report to Wolfspeed CEO Robert Feurle and will be relocating to North Carolina to work from the company’s headquarters in Durham.

Strategic Focus on Growth and Profitability

His appointment came as part of Wolfspeed’s strategy to enhance its leadership team because it aims for long-term growth and profitability in high-growth markets, according to the report. Vam Issum’s experience in navigating dynamic business cycles and his background in mergers and acquisitions are expected to support the company’s strategic focus on improving profitability and expanding its leadership in silicon carbide technologies.

Analysts Remain Cautious

While the latest analyst rating on Wolfspeed stock is a "Buy" with a $25.00 price target, but according to Spark, TipRanks’ AI Analyst, WOLF is a Neutral, according to the report.

Financial Reality: Heavy Losses and Deep Debt

The firm’s overall stock score indicates significant financial difficulties, which are driven by ongoing losses and heavy debt. Even though there are some positive elements, like the revenue growth at Mohawk Valley and restructuring efforts, the technical indicators and valuation remain weak, compounded by recent bankruptcy proceedings, according to the report.

The firm faces significant financial challenges with a market capitalisation of $183.64 million and negative EBITDA of $312.3 million in the past twelve months.

The company has recently filed for Chapter 11 bankruptcy protection as part of a prepackaged restructuring plan aimed at reducing its debt by about 70%.

However, the company has planned to continue normal operations during the bankruptcy process, like delivering products to customers and paying vendors in the ordinary course of business, and it expects to emerge from bankruptcy by the end of the third quarter of 2025.