Qualcomm's stock plunged 7.30% during the intraday trading session on Wednesday, marking a significant reversal from recent gains.

The sharp decline comes as investors engaged in profit-taking following a substantial rally driven by news that ByteDance, the parent company of TikTok, tapped Qualcomm to supply millions of custom artificial intelligence data center chips. The stock had surged approximately 5-8% on the previous day after the deal was reported and had climbed over 20% in less than a week prior to the sell-off.

Broader weakness in the semiconductor sector also contributed to the decline, with the Philadelphia Semiconductor Index falling over 2% during the session. The pullback reflects a market adjustment after the stock's rapid ascent fueled by the significant AI chip agreement announcement.