Worst Performing Chip Stock Faces More Gloom in 2024
- Wolfspeed investors have soured amid struggles with new plant
- The semiconductor stock is off to a rough start this year
Joe Biden during a visit to the Wolfspeed facilities in Durham, North Carolina.
Photographer: Jim Watson/AFP/Getty Images
In one of the best years on record for semiconductor stocks, Wolfspeed Inc. managed to lose more than a third of its value. Most on Wall Street aren’t betting on a quick turnaround in 2024.
The maker of chips that control power in electric vehicles and other devices was the only stock in the Philadelphia Stock Exchange Semiconductor index to decline in 2023. Investors soured after delays in its efforts to introduce a more advanced way of making chips that are a vital component of electric vehicles, a ramp up that should make it more profitable. Wolfspeed hasn’t been able to get its new plant in upstate New York running anywhere near capacity.