Navitas Semiconductor Corp (NVTS) saw its shares plummet 5.28% during intraday trading on Wednesday, marking a significant pullback after recent gains.

The decline is attributed to profit-taking pressure following a rally of more than 50% over the previous trading sessions, which had been driven by technical oversold conditions. Fundamental concerns also weighed on the stock, including weak first-quarter earnings that showed a 66.7% year-over-year widening of losses per share and a decline in gross margin to 37.6%.

Additionally, sentiment was dampened by dilution concerns from a planned issuance of up to $125 million in Class A common shares, alongside a generally negative backdrop in the broader semiconductor sector during the session.