GSI Technology (GSIT) AI Stock Analysis

• Market Cap: $307.04M
• Dividend Yield: N/A
• Average Volume (3M): 781.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.06
• Revenue Growth: 22.00%
• EPS Growth: 28.06%
• Country: US
• Employees: 148
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.09
• Shares Outstanding: 36,186,203
• 10 Day Avg. Volume: 704,188
• 30 Day Avg. Volume: 781,173
• PEG Ratio: 0.10
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 2.53
• P/FCF Ratio: -3.98
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 7.52
• Enterprise Value/Gross Profit: 13.57
• Enterprise Value/Ebitda: -17.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $10.00 ▲(65.02% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by ongoing operating losses and negative cash flow despite improving trends and a low-debt balance sheet. Technicals are supportive with strong price momentum above key moving averages, while the latest earnings update offers constructive guidance and product progress but also highlights rising costs, cash burn, and customer concentration risk. Valuation provides limited support due to negative earnings and no dividend yield.

Positive Factors

Sustainably strong gross margins

Mid-50% gross margins reflect durable product-level economics for its high-performance SRAM and edge-AI memory offerings. Consistently healthy gross margins provide structural room to fund R&D and investments, and if sustained, help the company reach operating leverage as revenue scales.

Ample liquidity and low leverage

A strengthened cash position and modest debt provide multi-quarter runway to execute product development and convert POCs without immediate dilution pressure. Low leverage also gives financial flexibility to absorb cyclical semiconductor revenue swings while investing in commercialization.

Progress on strategic products and government-backed POC

Technical benchmarks (Gemini II) and initiated PLATO hardware development represent structural IP and product progress targeting low-power edge AI. Government-funded Sentinel POC provides non-dilutive support and a pathway to validated design wins, which can produce durable revenue streams if converted.

Negative Factors

Persistent operating losses and negative cash flow

Sustained operating losses and negative operating cash flow are structural headwinds. Continued cash burn requires ongoing financing or rapid revenue scale-up; until operating cash flow flips, profitability and capital allocation decisions remain constrained and investor risk is elevated.

Rising R&D and operating expenses

Sharp increases in R&D and overall OpEx are straining margins and widened operating losses. While spending targets product roadmap, higher fixed costs raise break-even revenue requirements and extend reliance on financing until new products generate recurring sales.

Customer concentration and revenue variability

Material swings in large-customer revenues and dependence on converting POCs/government awards create structural revenue unpredictability. High customer concentration amplifies downside risk to scale and makes long-term forecasting and sustained margin improvement harder until customer base diversifies.

GSI Technology Business Overview & Revenue Model

Company Description

GSI Technology, Inc., a fabless semiconductor company, designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. The company's associative processing unit products offers applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. In addition, it offers static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. The company also provide radiation-hardened and radiation-tolerant SRAMs for aerospace and military applications, such as networking satellites and missiles. Its products are used as components in our OEM customers' products, including routers, switches and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; audio/video processing; test and measurement applications consisting of high-speed testers; and automotive applications, such as smart cruise control; and medical applications, including ultrasound and CAT scan equipment. The company markets its products through a network of independent sales representatives and distributors. GSI Technology, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.

How the Company Makes Money

GSI Technology makes money primarily by selling its semiconductor products, with SRAM historically being its core revenue driver. Revenue is generated when customers (typically OEMs and system designers) purchase SRAM devices for incorporation into end products such as networking/telecom equipment and other systems that require high-speed memory. The company’s earnings are therefore driven by unit volumes shipped, average selling prices (which can vary by performance grade, density, packaging, and supply/demand conditions), and its ability to win and maintain design-ins at customers. If the company licenses technology, provides development services, or generates material revenue from other product lines or partnerships, specific details are not available here and are therefore null.

GSI Technology Financial Statement Overview

Summary

Mixed fundamentals: solid mid‑50% gross margins and modest leverage (debt-to-equity ~0.09) provide flexibility, but profitability and cash generation remain the core weakness with deeply negative operating margins (TTM EBIT margin ~-44%) and negative operating/free cash flow (about -$12M TTM). Losses and cash burn have improved versus FY2024, but the business remains in a turnaround phase.

Income Statement

GSIT’s TTM (Trailing-Twelve-Months) revenue improved versus the most recent annual period, and gross margin remains solid in the mid-50% range, indicating a defensible product-level margin profile. However, profitability is the key weakness: operating results are deeply negative (TTM EBIT margin around -44%) and the company is still generating sizable net losses (TTM net margin around -43%). While losses have narrowed materially versus FY2024, the overall earnings trajectory remains challenged and highly dependent on achieving better scale and cost control.

Balance Sheet

The balance sheet is a relative strength. Leverage is modest on a TTM (Trailing-Twelve-Months) basis (debt-to-equity ~0.09), providing financial flexibility compared with many small-cap semiconductor peers. That said, returns on equity are meaningfully negative due to ongoing losses, and the year-over-year shift in equity/assets (as shown in the dataset) highlights volatility that investors should monitor alongside continued cash burn.

Cash Flow

Cash generation remains weak. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (roughly -$12M), consistent with the company’s loss-making profile and implying continued reliance on balance-sheet resources. A positive point is that free cash flow has improved sharply versus the prior annual period, and free cash flow roughly tracks net income in magnitude (losses are not being dramatically worse in cash terms). Still, persistent negative operating cash flow is a material risk until profitability improves.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	24.69M	20.52M	21.77M	29.69M	33.38M	27.73M
Gross Profit	13.68M	10.14M	11.82M	17.68M	18.54M	13.22M
EBITDA	-10.70M	-15.96M	-19.50M	-16.70M	-15.04M	-20.05M
Net Income	-10.65M	-10.64M	-20.09M	-15.98M	-16.37M	-21.50M
Balance Sheet
Total Assets	98.46M	43.32M	42.48M	60.03M	76.42M	76.42M
Cash, Cash Equivalents and Short-Term Investments	70.67M	13.43M	14.43M	30.57M	43.96M	43.96M
Total Debt	8.77M	9.64M	1.52M	651.00K	898.00K	898.00K
Total Liabilities	14.84M	15.09M	6.50M	8.50M	11.97M	11.97M
Stockholders Equity	83.62M	28.23M	35.97M	51.37M	64.45M	64.45M
Cash Flow
Free Cash Flow	-12.47M	-13.02M	-18.00M	-17.16M	-14.60M	-15.46M
Operating Cash Flow	-12.13M	-12.97M	-17.35M	-16.84M	-13.83M	-15.25M
Investing Cash Flow	-340.00K	11.35M	2.76M	6.68M	4.20M	3.29M
Financing Cash Flow	68.06M	633.00K	1.81M	402.00K	2.37M	4.69M

GSI Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSIT, the sentiment is Positive. The current price of 6.06 is below the 20-day moving average (MA) of 7.98, below the 50-day MA of 7.57, and above the 200-day MA of 5.76, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 59.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSIT.

GSI Technology 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%
MRAM	60 Neutral	$215.02M	-357.39	-0.80%	―	-0.41%	-134.49%
GSIT	57 Neutral	$307.04M	-17.74	-22.69%	―	22.00%	28.06%
ATOM	55 Neutral	$182.65M	-3.38	-116.86%	―	-94.26%	3.20%
MX	49 Neutral	$106.41M	-3.11	-11.40%	―	-7.79%	10.04%
PXLW	48 Neutral	$38.42M	-4.25	39.55%	―	-38.72%	16.01%
WOLF	46 Neutral	$806.64M	-1.50	1017.75%	―	―	―