GIGADEVICE's stock experienced a significant plummet of 5.01% during intraday trading on Tuesday.

The sharp decline is primarily attributed to continued selling pressure from the company's controlling shareholder, Zhu Yiming, who has been executing a large-scale share reduction plan. The plan, first disclosed in early April, permits sales of up to 11.21 million shares through July, and Zhu has already cumulatively reduced holdings by 6.33 million shares between mid and late May, indicating further potential selling pressure ahead.

The broader semiconductor sector is also facing downward pressure, with several key peers trading lower. Industry analysts note that the sector had reached historically elevated crowding levels following sustained rallies, creating conditions for a technical pullback, which has contributed to GIGADEVICE's decline from its recent all-time high.