Shares of Wolfspeed Inc. (WOLF) plummeted 5.08% on Thursday, January 30, 2025, amid a wave of analyst downgrades and concerns over the semiconductor industry's near-term challenges.

The semiconductor company faced significant selling pressure after several analysts lowered their price targets, citing factors such as supply chain disruptions, slowing demand, and concerns about Wolfspeed's financial performance and growth prospects.

Morgan Stanley cut its price target on Wolfspeed to $8 from $11, maintaining an Equalweight rating. Canaccord Genuity slashed its price target from $18 to $10, though it kept a Buy rating on the stock. Bank of America also lowered its target to $6 from $9.50, maintaining an Underperform rating.

However, Wolfspeed's management remains committed to addressing these challenges and positioning the company for long-term growth. During the Q2 2025 earnings call, the company outlined its priorities, including improving financial performance, strengthening the balance sheet, and raising cost-effective capital.

Wolfspeed also highlighted positive trends in certain areas, such as the electric vehicle market, where it reported a 92% year-over-year growth in revenue. The company expressed confidence in its ability to capitalize on the multi-decade growth opportunity in silicon carbide technology.