FIT Hon Teng's stock plummeted 5.02% during intraday trading on Friday, extending a period of sharp price fluctuations following its recent financial results.

The company reported strong first-quarter earnings, with revenue rising 8.61% year-over-year to US$1.198 billion and net profit from continuing operations jumping 67.32% to US$10.446 million. Management has expressed optimism regarding AI server upgrade opportunities over the next three years.

However, the market is focused on the stock's elevated valuation, which trades at a price-to-earnings ratio of approximately 62.67x, significantly above the industry average. Analysts have cautioned that the current valuation lacks a sufficient safety margin until the company demonstrates a more meaningful breakthrough in net margins. The sharp decline also represents a market digestion of recent gains; the stock had surged over 15% earlier in the week on speculation that its parent company, Foxconn, had delivered all-optical CPO switch cabinets to NVIDIA ahead of schedule.