Shares of Wolfspeed, which makes silicon carbide wafers and power chips, fell before the opening bell on Thursday after the company's quarterly earnings underwhelmed Wall Street even as demand from data centers increased.

Wolfspeed late Wednesday posted an adjusted loss of $2.26 a share in the fiscal fourth quarter, widening from a loss of 77 cents a year ago. Net revenue fell 24% to $149.6 million. There was no true Wall Street consensus with only four analysts covering the company, according to FactSet.

The company, however, said that artificial-intelligence data-center sales increased 20% sequentially and doubled for the full fiscal year.

The company, looking ahead, projected flat sales between $140 million and $160 million in the next quarter.

Shares fell 9.4% to $26.35 in premarket trading on Thursday after closing down 7.5% on Wednesday. The company emerged from Chapter 11 last September. The stock has advanced 67% this year and is up 32% since the closing bell of its first day trading on Sept. 29, 2025.

The Durham, N.C.-based company has two main businesses: sales of silicone carbide wafers in its materials division, and power chips and modules in its power products segment. While sales to the electric car industry in both divisions have declined amid lower demand for those vehicles, demand for its power products has increased from AI data centers in recent quarters.

One reason for the drop could be ongoing weakness in its materials division, where sales fell 44% in the fiscal fourth quarter from the same period last year and were down nearly 14% from the third quarter.