Chip firm Wolfspeed’s shares tank on disappointing forecast

Wolfspeed predicted a larger-than-feared quarterly loss, in a sign that costs are rising at a faster pace than sales at the chip firm whose products are used in sectors ranging from electric vehicles to renewable energy.

Its shares fell 14% in extended trading on Wednesday, after the company also forecast quarterly revenue below market estimates.

“We are incurring significant factory start-up costs relating to facilities that we are constructing or expanding that have not yet started revenue-generating production,” Wolfspeed said.