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Gsi Technology (GSIT)
NASDAQ:GSIT
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GSI Technology (GSIT) AI Stock Analysis

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GSI Technology

(NASDAQ:GSIT)

Rating:58Neutral
Price Target:
$5.00
▼(-2.34%Downside)
The overall stock score is influenced heavily by ongoing financial challenges and negative cash flows, despite technical momentum and some positive developments in the earnings call. Valuation concerns with a negative P/E ratio also weigh on the score.

GSI Technology (GSIT) vs. SPDR S&P 500 ETF (SPY)

GSI Technology Business Overview & Revenue Model

Company DescriptionGSI 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 MoneyGSI Technology generates revenue primarily through the sale of its semiconductor memory products, specifically its SRAM offerings. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and other technology companies that incorporate GSI's memory solutions into their products. Key revenue streams include sales in sectors such as networking and telecommunications, where there is a high demand for fast and reliable memory components. Additionally, GSI Technology collaborates with strategic partners and engages in research and development to enhance its product offerings and maintain a competitive edge in the market.

GSI Technology Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q4-2025)
|
% Change Since: 63.06%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative outcomes. While the company achieved significant revenue growth in the fourth quarter and made strides in reducing net loss, challenges such as a decline in annual revenue and gross margin were evident. The progress in securing new orders and enhancing product features are promising, yet financial constraints and market challenges remain. The sentiment is balanced with both promising advancements and notable challenges.
Q4-2025 Updates
Positive Updates
Revenue Growth in Q4
Fourth quarter revenue increased by 14% year-over-year and 9% sequentially to $5.9 million.
Reduction in Net Loss
Fiscal year 2025 net loss reduced by 47% from $20.1 million in 2024 to $10.6 million.
Secured Order for Radiation-Hardened SRAM
Initial order secured from a North American prime contractor for radiation-hardened SRAM, with expectations for follow-on orders.
Progress in SBIR Program
SBIR programs progressing well with $1.6 million generated and an additional $1 million anticipated.
Plato Chip Enhancement
Integration of a camera interface into the Plato chip, increasing its market potential for AI applications.
Negative Updates
Annual Revenue Decline
Fiscal year 2025 annual revenue declined by 6% compared to the prior year.
Decrease in Gross Margin
Fiscal year 2025 gross margin decreased to 49.4% from 54.3% in the prior year.
Ongoing Tariff Negotiations
Potential variability in shipments due to ongoing tariff negotiations between the US and trading partners.
Cash and Working Capital Decline
Cash and cash equivalents decreased from $14.4 million in 2024 to $13.4 million in 2025, with working capital declining from $24.7 million to $16.4 million.
Company Guidance
During the GSI Technologies Fourth Quarter and Fiscal Year 2025 Results Conference Call, the company reported significant improvements in several key financial metrics. For the fourth quarter, revenue increased by 14% year-over-year to $5.9 million, contributing to a reduced net loss. The company achieved a 47% reduction in annual net loss for fiscal year 2025, bringing it down to $10.6 million, primarily due to a 35% reduction in operating expenses. GSI Technologies ended the fiscal year with $13.4 million in cash and maintained a disciplined operating structure to preserve cash. Gross margin for the fourth quarter was reported at 56.1%, an increase from 51.6% in the same quarter of the previous year. The company also highlighted strong demand for its SRAM chips and progress in its SBIR programs, which contributed $1.6 million in payments and are expected to bring in an additional $1 million. Looking forward, GSI Technologies plans to sustain its operational efficiency while exploring funding opportunities to support its strategic initiatives in both commercial and government markets.

GSI Technology Financial Statement Overview

Summary
GSI Technology faces challenges in revenue and profitability, with declining revenues and persistent losses. The balance sheet is stable with manageable debt and strong cash reserves, but negative cash flows are concerning.
Income Statement
45
Neutral
GSI Technology has faced declining revenues over the past few years, with a significant drop in total revenue from $43.34M in 2020 to $20.52M in 2025. The company has consistently reported negative EBIT and net income, indicating ongoing operational challenges. Profit margins have been negative, reflecting difficulty in achieving profitability.
Balance Sheet
60
Neutral
The balance sheet shows a moderate debt-to-equity ratio with total debt rising but still manageable relative to equity. Stockholders' equity has decreased over the years, suggesting potential concerns about financial stability. However, the equity ratio remains healthy, and the company maintains a strong cash position, which provides some financial flexibility.
Cash Flow
50
Neutral
Operating cash flows have been consistently negative, which is concerning for long-term sustainability. The free cash flow has also been negative, indicating that the company is not generating enough cash to cover its capital expenditures. The firm has managed to maintain investing and financing activities but needs to improve cash flow generation to support growth.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue20.52M21.77M29.69M33.38M27.73M
Gross Profit10.14M11.82M17.68M18.54M13.22M
EBITDA-15.96M-19.50M-14.01M-15.04M-20.05M
Net Income-10.64M-20.09M-15.98M-16.37M-21.50M
Balance Sheet
Total Assets43.32M42.46M59.88M76.42M87.61M
Cash, Cash Equivalents and Short-Term Investments13.43M14.43M30.57M43.96M53.95M
Total Debt9.64M1.52M651.00K898.00K699.00K
Total Liabilities15.09M6.49M8.50M13.31M12.02M
Stockholders Equity28.23M35.97M51.37M64.45M75.59M
Cash Flow
Free Cash Flow-13.02M-18.00M-17.16M-14.60M-15.46M
Operating Cash Flow-12.97M-17.35M-16.84M-13.83M-15.25M
Investing Cash Flow11.35M2.76M6.68M4.20M3.29M
Financing Cash Flow633.00K1.81M402.00K2.37M4.69M

GSI Technology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.12
Price Trends
50DMA
3.56
Positive
100DMA
3.08
Positive
200DMA
3.12
Positive
Market Momentum
MACD
0.48
Negative
RSI
86.89
Negative
STOCH
97.64
Negative
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 5.12 is above the 20-day moving average (MA) of 3.95, above the 50-day MA of 3.56, and above the 200-day MA of 3.12, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 86.89 is Negative, neither overbought nor oversold. The STOCH value of 97.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSIT.

GSI Technology Risk Analysis

GSI Technology disclosed 44 risk factors in its most recent earnings report. GSI Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

GSI Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TRTRT
66
Neutral
$23.12M37.800.06%-14.64%-97.84%
63
Neutral
$34.26B5.42-11.67%1.85%5.30%-18.55%
SYSYT
62
Neutral
$39.98M6.2512.16%1.81%27.23%47.65%
58
Neutral
$138.80M-33.15%-5.73%47.83%
56
Neutral
$57.97M39.298.17%8.40%-18.22%
51
Neutral
$49.42M-25.57%8.46%39.81%
51
Neutral
$50.80M-161.18%63.08%96.46%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GSIT
GSI Technology
5.35
2.55
91.07%
TRT
Trio-Tech International
5.78
-0.10
-1.70%
AIRG
Airgain
4.30
-2.63
-37.95%
DVLT
Datavault AI
0.57
-2.00
-77.82%
SOTK
Sono-Tek
3.61
-0.58
-13.84%
SYT
SYLA Technologies Co., Ltd. ADR
1.50
-0.42
-21.87%

GSI Technology Corporate Events

Executive/Board ChangesShareholder Meetings
GSI Technology Board Member Jack Bradley to Step Down
Neutral
Jun 3, 2025

On May 29, 2025, Jack A. Bradley, a key member of GSI Technology‘s Board of Directors, announced he would not seek re-election at the company’s upcoming annual stockholders’ meeting. Bradley’s departure is not due to any disagreements with the company’s operations, policies, or practices, suggesting a smooth transition for the board and minimal disruption for stakeholders.

Executive/Board ChangesBusiness Operations and Strategy
GSI Technology Approves 2026 Variable Compensation Plan
Neutral
May 29, 2025

On May 27, 2025, GSI Technology‘s Compensation Committee approved the 2026 Variable Compensation Plan to incentivize performance and retain key employees through cash bonuses tied to the company’s fiscal performance ending March 31, 2026. The plan includes executive officers and key employees, with bonuses based on SRAM and APU net revenue targets, and offers potential payouts up to twice the target bonus if goals are exceeded, with vesting conditions extending through April 2028.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025