Shares of Wolfspeed Inc. (WOLF) nosedived 45.03% in early trading on Friday, hitting their lowest level since 1998, as investors reacted negatively to a leadership change and ongoing market concerns. The dramatic sell-off comes just a day after the chipmaker announced a new CEO, highlighting the company's recent struggles and uncertain future.

On Thursday, Wolfspeed named chip industry veteran Robert Feurle as its new CEO, effective May 1. This appointment follows the unexpected ousting of former CEO Gregg Lowe in November, which was done without cause. The market's severe reaction to the leadership transition suggests investors may be skeptical about the company's ability to navigate its current challenges under new management.

Adding to the pressure on Wolfspeed's stock is the significant short interest, with approximately 32.5% of the company's free float in short positions as of March 27, according to Ortex estimates. This high level of short interest indicates widespread bearish sentiment among traders and could be exacerbating the stock's downward movement.

The steep decline on Friday extends Wolfspeed's recent losses, with the stock now down about 40% in March alone. Year-to-date, the company's shares have fallen by more than 19%, reflecting ongoing concerns about its business prospects and market position in the competitive semiconductor industry. As Wolfspeed grapples with these challenges, investors will be closely watching for any signs of a turnaround under its new leadership.