Novosense's stock fell sharply by 5.28% during intraday trading, reflecting a broader downturn in the semiconductor sector.

The decline was driven by a continued correction trend across the semiconductor industry, with peers like Montage Technology, HUA HONG Semiconductor, and Innoscience also experiencing significant losses. Analysts note that after sustained rallies, the A-share semiconductor sector has reached historically high trading congestion levels, increasing short-term technical correction risks. Furthermore, recent reductions in holdings by the National IC Fund in multiple semiconductor companies have dampened overall market sentiment.

Additional selling pressure stemmed from concentrated profit-taking. Novosense had previously seen its share price surge approximately 49% during a period when major shareholders were reducing their stakes. The combined effect of broad sector weakness and the release of short-term gains from these shareholders created sustained downward pressure on the stock.