Dabo Swinney confirmed the news after practice on Wednesday.
"It was kind of a freaky, but that's usually how those things happen," Swinney said. "It's just a real shame for him, because he was having a great year and was going to have a great year."
Peake caught five passes for 58 yards in the season opening win over Georgia. Against S.C. State a week later, he had three receptions for 26 yards and a score.
"We'll apply to see if we can get a medical redshirt for him. He hasn't been redshirted yet. Hopefully, we can get this year back and he'll be a junior again next year," Swinney said. "He's got a great future in front of him.
"Obviously, there are plenty of people on this team that have done the same thing, so he'll be just fine. But it's always tough for a young person to come to grips with something like that -- can't play."
High School classmate Adam Humphries will step into the vacant starting spot.
"Adam can play anywhere, but he'll slide into Charone's spot, as far as the first three that run out there," Swinney said.
During his first two seasons at Clemson, Peake had 29 receptions for 243 yards and two touchdowns in 662 snaps over 27 games.
Elsewhere on the injury front, Roderick McDowell continues to recover from the concussion he suffered against S.C. State.
"He should be fine and ready to go by next week," Swinney said.
McDowell has been withheld from contact drills during the last two days of practice and could return to full speed by Sunday, which will be treated like a normal game week Tuesday.
Tyler Shatley was held out of the S.C. State game, thanks to a bout of plantar fasciitis.
"He'll be ready to go," Swinney said. "We're nursing him a little bit. We're babying him a little bit. He hasn't had much sugar around here. We're giving him a little sugar."
All joking aside, Shatley will be back to practice on Saturday and will play against N.C. State.
"He's tough as nails," Swinney said. "He could have played [versus S.C. State]. We kept him slow yesterday, today and tomorrow."
Mackensie Alexander continues to rehab the groin injury that has sidelined him for the last month and a half.
"We've just kind of put him on ice and tried to take that extra pressure away from trying to rush him back," Swinney said. "When he's back is when he'll be ready."
Swinney said that Alexander will not travel to Raleigh next week, neither will Wayne Gallman, who remains on the redshirt bubble.
B.J. Goodson continues to recover from a concussion that kept him out of the S.C. State game.
"He's still kind of having little headaches, so you can only go at their pace," Swinney said. "You can't get to the next step. You check this box; check this box and you can go to the next level.
"I think he had a little better day today, as far as our report this morning. He's still not there yet."
Charone Peake Profile