GIGADEVICE shares tumbled 5.02% during intraday trading on Monday, as a confluence of sector-wide headwinds and company-specific concerns drove selling pressure. The decline came amid broad weakness in the semiconductor sector, with major peers like SMIC, Hua Hong Grace, and Montage Technology also trading lower, reflecting lingering caution after disappointing forward guidance from major U.S. storage chip makers rattled global memory stocks.

Adding to the negative sentiment, controversy surrounding controlling shareholder Zhu Yiming's actions continued to stir debate. Market participants noted that Zhu reduced his holdings by approximately RMB 4.4 billion before proposing a RMB 1-2 billion share buyback for cancellation. Although technically compliant, the sequence has raised questions about potential regulatory loopholes, with some analysts suggesting that buyback mechanisms could serve as a buffer for capital maneuvers rather than purely benefiting shareholders.

Furthermore, pre-earnings caution has intensified ahead of the company's board meeting to review interim results on August 18 and the subsequent semi-annual report release, prompting investors to adopt a wait-and-see stance. The combination of sector pressure, governance concerns, and upcoming earnings uncertainty contributed to the sharp intraday drop.