FormFactor's stock plummeted 6.96% during Tuesday's intraday session, sharply reversing its recent upward trajectory.
The decline is attributed to significant profit-taking activity by investors following a substantial rally driven by the company's strong first-quarter earnings report. The stock had surged after FormFactor reported revenue of $230 million, a sequential gross margin improvement of 5.1 percentage points, and provided an upward revision to its second-quarter guidance.
Compounding the stock-specific selling pressure is broad weakness across the semiconductor equipment sector, with key industry peers also trading lower. Investors appear to be locking in gains after the stock's recent advance brought it near its 52-week highs.
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