ILUVATAR COREX's stock plummeted 5.14% during intraday trading on Friday, marking a significant pullback after the stock's recent surge to record highs.

The decline comes as investors engage in profit-taking following the stock's over 17% surge to a record high the previous day, which pushed its market capitalization past the 100 billion HKD milestone. While the company recently reported strong annual results with revenue growth of 91.6% year-over-year and core GPU business revenue surging 149.6%, analysts have raised concerns about near-term headwinds.

Market participants are weighing the strong top-line growth against ongoing profitability challenges, including widening losses, declining gross margins on inference products due to aggressive pricing strategies, elevated R&D expenditures, and persistent negative cash flow. Despite J.P. Morgan initiating coverage with an "Overweight" rating and a 620 HKD target price, these fundamental concerns appear to be driving the current sell-off.