GCT Semiconductor Holding (GCTS) AI Stock Analysis

• Market Cap: $62.81M
• Dividend Yield: N/A
• Average Volume (3M): 310.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• Revenue Growth: -46.98%
• EPS Growth: -186.82%
• Country: US
• Employees: 121
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.25
• Shares Outstanding: 57,099,560
• 10 Day Avg. Volume: 224,357
• 30 Day Avg. Volume: 310,150
• PEG Ratio: 0.18
• Price to Book (P/B): -1.79
• Price to Sales (P/S): 11.65
• P/FCF Ratio: -3.38
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 32.93
• Enterprise Value/Gross Profit: -16.02K
• Enterprise Value/Ebitda: -3.93
• 1Y Price Target: $3.50
• Price Target Upside: 218.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.00 ▼(-9.09% Downside)

GCT Semiconductor's overall stock score reflects significant financial challenges, with declining revenues and negative margins being the most impactful factors. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to negative profitability. Although the earnings call and recent corporate events show some positive developments in 5G technology and financing flexibility, these are not sufficient to offset the broader financial concerns.

Positive Factors

5G Technology Commercialization

The recognition of 5G product revenue marks a significant milestone, indicating early adoption and potential for future growth in the 5G market.

Strengthened Financial Position

The additional financing enhances the company's ability to scale production and meet demand, supporting long-term growth and operational stability.

Convertible Note Agreement

The agreement provides financial flexibility, allowing strategic capital raising while minimizing shareholder dilution, supporting growth initiatives.

Negative Factors

Revenue Decline

The sharp decline in revenue highlights challenges in maintaining sales momentum, impacting the company's ability to sustain operations and growth.

Negative Gross Margin

Negative gross margins indicate inefficiencies in cost management, hindering profitability and requiring strategic adjustments to improve financial health.

High Leverage and Negative Equity

High leverage and negative equity pose risks to financial stability, limiting the company's ability to invest in growth and weather economic downturns.

GCT Semiconductor Holding Business Overview & Revenue Model

Company Description

GCT Semiconductor Holding, Inc., operates as a fabless semiconductor company, designs, develops, and markets integrated circuits for the wireless semiconductor industry. The company provides RF and modem chipsets based on 4G LTE technology, including 4G LTE, 4.5G LTE Advanced, and 4.75G LTE Advanced-Pro. It also develops and sells cellular IoT chipsets for low-speed mobile networks such as eMTC/NB-IOT/Sigfox, and other network protocols; and 5G solutions. Its products and solutions are used in smartphones, tablets, hotspots, CPEs, USB dongles, routers, and M2M applications. The company sells its products directly or indirectly through distributors to original equipment manufacturers and original design manufacturers primarily in Taiwan, China, Korea and Japan, Europe, North America and South America. The company was formerly known as Global Communication Technology, Inc. GCT Semiconductor Holding, Inc. was founded in 1998 and is headquartered in San Jose, California.

How the Company Makes Money

GCT Semiconductor generates revenue through the sale of its semiconductor products, which are primarily sold to original equipment manufacturers (OEMs) and distributors in various industries. The company's revenue model is driven by direct sales of its high-performance RF components and integrated circuits, which are essential for enhancing telecommunications and electronic devices. Key revenue streams include bulk orders from large contracts with major tech companies, ongoing supply agreements, and licensing of proprietary technologies. Additionally, GCTS may benefit from strategic partnerships with other technology firms that enhance its market reach and product offerings, further contributing to its earnings through collaborative projects and joint ventures.

GCT Semiconductor Holding Financial Statement Overview

Summary

GCT Semiconductor Holding faces significant financial challenges across all verticals. The income statement highlights declining revenues and negative margins, while the balance sheet shows negative equity and high leverage. Cash flow remains a concern, with negative operating and free cash flows. The company needs to address these issues to stabilize its financial position and improve profitability.

Income Statement

The income statement reflects significant challenges, with declining revenue and negative profit margins. The TTM data shows a severe revenue decline of 35.9% and negative net profit margins, indicating profitability issues. The company has struggled with negative EBIT and EBITDA margins, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a precarious financial position, with negative stockholders' equity and a high debt-to-equity ratio. The negative equity ratio indicates financial instability. However, the return on equity has improved slightly, albeit still negative, reflecting ongoing challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, although there is a slight improvement in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues. Despite these challenges, the free cash flow to net income ratio is above 1, suggesting some efficiency in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.89M	9.13M	16.03M	16.67M	25.52M
Gross Profit	-8.00K	5.08M	6.73M	5.05M	8.16M
EBITDA	-32.64M	-6.74M	-13.89M	-21.38M	-20.63M
Net Income	-39.33M	-12.38M	-22.47M	-26.41M	-26.81M
Balance Sheet
Total Assets	24.27M	19.90M	16.43M	16.48M	353.86M
Cash, Cash Equivalents and Short-Term Investments	8.34M	1.44M	258.00K	1.40M	1.21M
Total Debt	435.00K	43.45M	80.07M	70.34M	5.49M
Total Liabilities	104.42M	79.21M	131.87M	111.41M	36.53M
Stockholders Equity	-80.15M	-59.31M	-115.44M	-94.93M	317.32M
Cash Flow
Free Cash Flow	-27.22M	-31.50M	-9.16M	-18.99M	-18.38M
Operating Cash Flow	-25.72M	-30.96M	-8.83M	-18.09M	-17.74M
Investing Cash Flow	-1.50M	-542.00K	-331.00K	-903.00K	-637.00K
Financing Cash Flow	35.94M	36.47M	8.15M	19.27M	10.57M

GCT Semiconductor Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCTS, the sentiment is Negative. The current price of 1.1 is below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.34, and below the 200-day MA of 1.40, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 31.30 is Neutral, neither overbought nor oversold. The STOCH value of 28.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GCTS.

GCT Semiconductor Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTT	56 Neutral	$103.11M	-44.38	-2.24%	―	-2.20%	-204.45%
PXLW	47 Neutral	$40.34M	-1.36	―	―	-38.72%	16.01%
MX	46 Neutral	$99.31M	-2.66	-8.46%	―	-7.79%	10.04%
GCTS	43 Neutral	$62.81M	-1.44	―	―	-46.98%	-186.82%
WKEY	42 Neutral	$100.22M	-10.72	-24.81%	―	-42.77%	83.21%
NA	37 Underperform	$78.26M	-3.71	-21.44%	―	―	―

GCT Semiconductor Holding Corporate Events

GCT Semiconductor Enters $20M Convertible Note Agreement

On December 15, 2025, GCT Semiconductor Holding, Inc. entered into a Convertible Promissory Note Purchase Agreement with Indigo Capital LP, allowing the company to issue and sell convertible promissory notes up to $20 million. This agreement provides GCT Semiconductor with significant flexibility in its financing plans, enabling the company to control the timing and amount of capital raised, while minimizing dilution to existing stockholders.

The most recent analyst rating on (GCTS) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on GCT Semiconductor Holding stock, see the GCTS Stock Forecast page.