SiTime Corp shares tumbled 5.04% intraday on Wednesday, with the stock trading at $555.76 as investors locked in profits ahead of the company's highly anticipated Q2 earnings release scheduled after market close.

The sell-off comes just one day after the stock surged over 7% in an oversold recovery rally, suggesting that Wednesday's decline was largely driven by profit-taking behavior. Adding to the cautious sentiment, the company is expected to report earnings per share of $0.80, with uncertainty surrounding the upcoming results intensifying selling pressure.

On the fundamental side, SiTime completed its acquisition of Renesas Electronics' timing business on July 1, a move expected to contribute at least $300 million in annual revenue and accelerate the company's path to $1 billion in revenue. However, market participants remain wary of acquisition integration risks and the added financial leverage from a newly secured $200 million senior secured revolving credit facility with Wells Fargo. The combination of pre-earnings jitters and these integration concerns fueled the intraday decline.