GigaDevice's stock plummeted 7% during intraday trading on Friday, as the Hong Kong-listed semiconductor company faced significant selling pressure along with other storage and memory chip stocks.

The sharp decline comes after a period of extreme gains for GigaDevice, which had surged over 350% in the past year, leading to mounting concerns over elevated valuations at approximately 55 times forward earnings. Additional pressure stemmed from Chairman Zhu Yiming's recent reduction of 6.33 million shares during May, representing approximately RMB 2.5 billion in proceeds.

The broader storage chip sector experienced weakness across the board, with leveraged products tracking major industry players like SK Hynix and Samsung showing substantial declines. Market analysts noted a broader rotation away from high-beta technology names into defensive sectors amid fading expectations for additional policy stimulus.