Tower Semiconductor Ltd. shares plunged 9.47% during intraday trading on Tuesday, even as the company reported second-quarter earnings and revenue that topped analyst expectations and provided third-quarter guidance well above forecasts.

The chipmaker posted adjusted earnings of $0.88 per share, beating the consensus estimate of $0.76. Revenue climbed 23.7% year-over-year to $460.1 million, surpassing the FactSet estimate of $454.7 million. Looking ahead, Tower Semiconductor expects third-quarter revenue of $520 million, plus or minus 5%, significantly higher than the $490 million analysts had projected.

The sharp decline despite the positive results may be attributed to investors taking profits following a substantial rally in the stock, which had gained nearly 100% year-to-date. The market reaction indicates that much of the good news may have already been priced in, and some investors may have been looking for an even more impressive beat to justify the elevated valuation.