Navitas Semiconductor Corp (NVTS) experienced a significant 24-hour plunge of 5.12% during Thursday's trading session, reflecting heightened selling pressure in the chip sector.

The decline represents a continuation of profit-taking activity following the stock's surge of over 20% in the prior session. That rally was triggered by the company being named an official partner in NVIDIA's MGX ecosystem for its 800V DC power architecture, with collaboration focused on advancing 800VDC artificial intelligence infrastructure for next-generation AI data centers.

However, multiple fundamental concerns have intensified the selling pressure. The company's first-quarter earnings revealed widening per-share losses year-over-year and declining gross margins. Additionally, significant director share sales and a planned stock offering have raised dilution concerns among investors. These factors, combined with the sharp single-day rally, amplified bull-bear divergence and accelerated profit-taking across trading sessions.