Wolfspeed (WOLF) shares plummeted more than 21% on Wednesday. The decline occurred on May 27 amid a broader semiconductor sector downturn.
Analysts attributed the move to profit-taking following a 90% rally over the preceding month. The stock had surged after the company emerged from Chapter 11 bankruptcy protection earlier this year.
Investors are now weighing the company's valuation against ongoing operational losses. Potential share dilution related to restructuring also influenced the sell-off.