GIGADEVICE's stock price plummeted 5.07% during intraday trading on Monday.

The selloff is attributed to market fears of computing power oversupply, triggered by Meta's reported plan to launch a cloud infrastructure business and sell excess AI computing resources externally. This has been interpreted as a signal that AI capital expenditure is peaking, leading to a broad selloff across the global computing power supply chain.

Additionally, the stock faces pressure from elevated valuation concerns. GIGADEVICE's trailing price-to-earnings ratio stands at approximately 200 times, significantly above the IC design industry average of around 129 times. The company itself has previously warned that storage chip prices are at historical highs and that supply-demand rebalancing could lead to a considerable price correction.