Wolfspeed forecasts dour quarterly revenue on weak demand for its semiconductors

Chipmaker Wolfspeed forecast third-quarter revenue below estimates on Wednesday, as slower sales growth for electric vehicles hurt demand for its semiconductors used in them, sending its shares down 2% in extended trading.

Wolfspeed is a key supplier of specialized chips and power devices for electric vehicles, a segment that faces demand concerns.

Lower subsidies, higher borrowing costs and consumer weakness have weighed on demand at EV companies, with worldwide sales growth this year expected to fall to 27.1% from 29% in 2023, according to Canalys.