GSI Technology (GSIT) AI Stock Analysis

• Market Cap: $244.98M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.16
• 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: 556,581
• 30 Day Avg. Volume: 1,097,055
• 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: 0.70
• Enterprise Value/Revenue: 6.97
• Enterprise Value/Gross Profit: 12.57
• Enterprise Value/Ebitda: -16.08
• 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: 45 Neutral
• Price Target: $7.50 ▲(23.76% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily held down by sustained operating losses and negative operating/free cash flow, despite improving revenue and solid gross margins. Technicals add additional near-term pressure with weak momentum and the stock trading below key moving averages. The earnings call provides some support via Q4 guidance and meaningful product/government-funding milestones, but elevated spending, cash burn, and customer volatility temper the outlook, while valuation lacks support due to negative earnings and no dividend.

Positive Factors

Defensible Product-Level Margins

Sustained mid-50% gross margins indicate product-level durability: architectures and pricing for high-performance SRAM and inference modules preserve unit economics even as revenue scales. This margin buffer supports reinvestment in R&D and provides runway while operating leverage is pursued.

Strong Balance Sheet After Financing

A sizable cash balance and positive working capital create multi-quarter funding for R&D and product development without immediate dilution or distress. This liquidity reduces execution risk on multi-year projects (Gemini II, PLATO) and supports POC conversion timelines and government-funded initiatives.

Differentiated Technology & Product Progress

Measured performance advantages (faster TTFT at lower power) reflect meaningful IP and system-level differentiation for edge AI use cases. Durable technical leadership can win design-ins across drones, robotics, and smart infrastructure where low-latency, low-power inference drives long-term demand and higher switching costs.

Negative Factors

Persistent Negative Cash Flow

Consistent negative operating and free cash flow implies reliance on external financing to fund operations and R&D. Over months, this increases execution risk if capital markets tighten or future financing dilutes shareholders; persistent cash burn must convert to operating profitability to be sustainable.

Rising R&D and Operating Expenses

Sharp R&D and operating expense increases widen structural operating losses and extend the time to break-even. While spend can fund long-term IP and hardware development, sustained high SG&A and R&D levels without commensurate revenue scale pressure margins and raise the bar for future profitability.

Customer Revenue Volatility / Concentration

Large swings in key customer revenues highlight concentration and demand risk; losing or seeing sharp declines from major customers can quickly erode revenue runway. Durable growth requires broader design-ins and diversified end-market traction to reduce single-customer dependency.

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 generates revenue primarily through the sale of its SRAM products to original equipment manufacturers (OEMs) and other customers in the telecommunications and networking sectors. The company's revenue model is based on direct sales of its memory products, which are often sold as components in larger electronic systems. Key revenue streams include bulk sales of memory chips, custom memory solutions tailored to specific customer needs, and ongoing contracts with major clients in the telecommunications and defense sectors. Additionally, GSI Technology may benefit from strategic partnerships with technology firms and manufacturers that require specialized memory solutions, further enhancing its market presence and revenue generation capabilities.

GSI Technology Financial Statement Overview

Summary

Revenue is improving and gross margins remain solid in the mid-50% range, with modest leverage supporting flexibility. However, operating and net margins are deeply negative and cash flow is persistently negative, implying ongoing reliance on balance-sheet resources despite some improvement versus the prior period.

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 6.77, below the 50-day MA of 6.91, and above the 200-day MA of 5.40, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 59.20 is Neutral, neither overbought nor oversold. The STOCH value of 67.31 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	57 Neutral	$253.02M	―	-0.91%	―	-0.41%	-134.49%
ATOM	55 Neutral	$168.07M	-9.36	-116.86%	―	-94.26%	3.20%
MX	50 Neutral	$93.91M	-2.58	-8.46%	―	-7.79%	10.04%
WOLF	49 Neutral	$908.54M	-1.27	-349.80%	―	―	―
PXLW	49 Neutral	$37.26M	-1.33	―	―	-38.72%	16.01%
GSIT	45 Neutral	$244.98M	―	-18.76%	―	22.00%	28.06%