GSI Technology (GSIT) AI Stock Analysis

• Market Cap: $211.45M
• Dividend Yield: N/A
• Average Volume (3M): 9.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.91
• Revenue Growth: 22.00%
• EPS Growth: 28.06%
• Country: US
• Employees: 148
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.11
• Shares Outstanding: 35,241,703
• 10 Day Avg. Volume: 1,125,851
• 30 Day Avg. Volume: 9,828,667
• 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: 0.44
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 6.92
• Enterprise Value/Ebitda: -8.37
• 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: 51 Neutral
• Price Target: $7.00 ▲(21.95% Upside)

GSI Technology's overall stock score reflects significant financial challenges, particularly in profitability and cash flow. While the earnings call and corporate events highlight strategic advancements and financing that could support future growth, the current financial performance and valuation metrics weigh heavily on the score. Technical indicators provide mixed signals, with some potential for upward movement. The company must focus on improving its financial health to enhance its investment appeal.

Positive Factors

Technological Advancements

The validation of the Gemini-I chip by Cornell University positions GSI Technology as a competitive player in the AI sector, potentially enhancing its market position and driving future growth.

Equity Financing

The $50 million equity financing provides GSI Technology with capital to accelerate development in hardware and software, supporting strategic growth initiatives in AI and high-performance computing.

Revenue Growth

The significant increase in net revenues demonstrates GSI Technology's ability to expand its market reach and improve financial performance, indicating positive momentum in its core business sectors.

Negative Factors

Operating Loss

Despite improvements, the ongoing operating loss highlights challenges in achieving profitability, which could impact GSI Technology's long-term financial health and operational efficiency.

Decreased Defense Sales

The decline in military defense sales suggests potential vulnerabilities in this segment, which could affect revenue stability if not addressed through diversification or new contracts.

Negative Cash Flow

Negative cash flows indicate GSI Technology's struggles in generating sufficient cash from operations, which may limit its ability to invest in growth opportunities and maintain financial flexibility.

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

GSI Technology is facing significant financial challenges, particularly in terms of profitability and cash flow generation. While there is some revenue growth, the company struggles with negative margins and cash flow deficits. The balance sheet is relatively stable with low leverage, but the negative return on equity indicates inefficiencies in generating returns. Overall, the company needs to focus on improving operational efficiency and profitability to enhance its financial health.

Income Statement

GSI Technology's income statement shows a mixed performance. The company has managed to achieve a revenue growth rate of 8.56% in the TTM period, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 55.80%, but the negative net profit margin of -48.54% highlights significant challenges in controlling costs and achieving profitability.

Balance Sheet

The balance sheet of GSI Technology reflects a moderate financial position. The debt-to-equity ratio is low, indicating limited reliance on debt financing, which is a positive sign. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not explicitly calculated, but the overall leverage appears manageable.

Cash Flow

The cash flow statement reveals significant challenges for GSI Technology. The company has negative operating and free cash flows, with a concerning free cash flow growth rate of -24.67% in the TTM period. The operating cash flow to net income ratio is negative, indicating that the company is not generating cash from its operations to cover its net losses. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is in line with net income, but both are negative.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.02M	20.52M	21.77M	29.69M	33.38M	27.73M
Gross Profit	13.41M	10.14M	11.82M	17.68M	18.54M	13.22M
EBITDA	-11.08M	-15.96M	-19.50M	-16.70M	-15.04M	-20.05M
Net Income	-11.66M	-10.64M	-20.09M	-15.98M	-16.37M	-21.50M
Balance Sheet
Total Assets	51.99M	43.32M	42.48M	60.03M	76.42M	76.42M
Cash, Cash Equivalents and Short-Term Investments	25.33M	13.43M	14.43M	30.57M	43.96M	43.96M
Total Debt	9.06M	9.64M	1.52M	651.00K	898.00K	898.00K
Total Liabilities	13.44M	15.09M	6.50M	8.66M	11.97M	11.97M
Stockholders Equity	38.55M	28.23M	35.97M	51.37M	64.45M	64.45M
Cash Flow
Free Cash Flow	-7.88M	-13.02M	-18.00M	-17.16M	-14.60M	-15.46M
Operating Cash Flow	-7.83M	-12.97M	-17.35M	-16.84M	-13.83M	-15.25M
Investing Cash Flow	9.00K	11.35M	2.76M	6.68M	4.20M	3.29M
Financing Cash Flow	14.79M	633.00K	1.81M	402.00K	2.37M	4.69M

GSI Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.74
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSIT, the sentiment is Negative. The current price of 5.74 is below the 20-day moving average (MA) of 6.62, below the 50-day MA of 7.51, and above the 200-day MA of 4.34, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 23.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	54 Neutral	$205.82M	―	-0.91%	―	-0.41%	-134.49%
GSIT	51 Neutral	$211.45M	―	-32.47%	―	22.00%	28.06%
MX	46 Neutral	$105.43M	―	-8.46%	―	-7.79%	10.04%
PXLW	46 Neutral	$43.49M	-1.47	―	―	-38.72%	16.01%
WOLF	41 Neutral	$514.22M	―	―	―	―	―
ATOM	41 Neutral	$89.97M	-4.20	-116.86%	―	-94.26%	3.20%

GSI Technology Corporate Events

GSI Technology Announces $50M Securities Purchase Agreement

On October 21, 2025, GSI Technology announced a securities purchase agreement with an institutional investor for a registered direct offering of common stock and pre-funded warrants, expected to close on October 22, 2025. The offering aims to raise approximately $50 million, which will be used for general corporate purposes, including the development of the company’s APU product line, potentially enhancing its market position in AI and high-performance computing.