GigaDevice's stock plummeted 5.02% during intraday trading on Tuesday, following a significant rally that pushed the stock to an all-time high in the previous session.

The sharp decline appears to be driven by profit-taking activity after the stock's recent surge, with two large block trades executed at a 15.52% discount to market price on the previous day. Additionally, director Zhu Yiming reduced holdings by 81,000 shares on May 15 and 863,000 shares on May 11, signaling insider profit-taking near elevated levels.

The broader semiconductor sector also faced selling pressure, contributing to GigaDevice's decline as sector-wide weakness added to stock-specific headwinds from the profit-taking activity.