GIGADEVICE's stock plummeted 5.10% during intraday trading on Friday, marking a significant downward movement for the semiconductor company.

The sharp decline follows the company's controlling shareholder and founder Zhu Yiming's announced plan to reduce holdings by up to 11.21 million shares, representing approximately 1.60% of total share capital, citing personal funding needs. Additionally, market participants attribute the sell-off to profit-taking pressure after the stock's recent strong performance, having surged over 10% just days earlier.

Broader concerns are also weighing on investor sentiment, including geopolitical tensions in the Middle East affecting risk appetite, potential shortfalls in the consumer electronics recovery, and volatility in storage prices. Despite these near-term headwinds, the company reported robust full-year 2025 financial results with revenue growth of 25.12% and net profit surging 49.47% year-over-year.