Wolfspeed (NYSE:WOLF) shares cratered 40% during post-market trading on Tuesday after the Wall Street Journal reported the semiconductor firm is preparing to file for bankruptcy. The stock had already dropped 10% by the closing bell before plummeting another 40% post-market.

The Triangle semiconductor firm is headed toward bankruptcy within weeks, The Wall Street Journal reported, citing sources familiar with the matter.

Wolfspeed stock was plummeting on Wednesday after The Wall Street Journal reported the embattled chip wafer maker could file for bankruptcy within a matter of weeks. Shares plunged 56% to $1.38 ahead of the opening bell Wednesday.