VeriSilicon Microelectronics experienced a rapid decline in afternoon trading, with its stock price falling nearly 14% at one point during the session. The shares briefly hit a low of 219 yuan per share. By the time of reporting, the stock was trading at 221.99 yuan per share, giving the company a total market capitalization of 116.7 billion yuan.

Other leading GPU-related stocks, such as Haiguang Information and Loongson Technology, also saw short-term declines in the afternoon.

Investors actively sought explanations, with many asking, "What's happening?" and "What is causing this drop?" Some expressed frustration, commenting that their "confidence is shattered" and worrying that the decline could "drag down the entire semiconductor sector."

Market speculation has circulated several unverified rumors concerning VeriSilicon, including weaker-than-expected performance projections for the first quarter of 2026, potential order losses to competitors, and negative impacts from a related company establishing its own custom chip subsidiary. None of these rumors have been officially confirmed and appear to be based largely on market and investor conjecture.

According to recent investor relations disclosures, VeriSilicon is a company that relies on its proprietary semiconductor IP to offer platform-based, comprehensive, and one-stop chip customization services, as well as semiconductor IP licensing. When the company went public on the STAR Market in 2020, it was hailed as "China's leading semiconductor IP provider." Its business has seen rapid growth in the AI chip customization sector, and it is now regarded as a leader in AI ASIC solutions.

Amid increasing industry competition, VeriSilicon emphasized its strengths, including advanced chip customization technology, a diverse IP portfolio, extended design capabilities covering software and system platforms, and extensive experience serving a wide range of clients. The company has become a preferred chip design partner for system manufacturers, internet firms, cloud service providers, and automotive companies. As its one-stop chip customization capabilities improve, VeriSilicon expects to deliver greater value to customers, increase its involvement in high-value projects, and enhance its pricing power and overall competitiveness, which should support improved profitability.