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Semileds Corp. (LEDS)
NASDAQ:LEDS
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SemiLEDs (LEDS) AI Stock Analysis

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LEDS

SemiLEDs

(NASDAQ:LEDS)

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Neutral 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
$2.00
▼(-6.98% Downside)
Action:Reiterated
Date:07/16/26
The score is driven primarily by mixed financial performance—meaningfully improved and positive free cash flow offsets continued losses, a steep TTM revenue decline, thin gross margins, and still-notable leverage. Technicals add support given strong price strength above key moving averages with positive MACD, while valuation remains a headwind due to the negative P/E and lack of a dividend yield.
Positive Factors
Improved cash generation
The shift to consistent positive operating and free cash flow represents a durable improvement in internal funding ability. Over the next several months this reduces reliance on external financing, supports working-capital needs and gives management room to prioritize stabilization or selective reinvestment despite ongoing losses.
Negative Factors
Material revenue decline
A nearly 25% TTM revenue contraction is a durable headwind: loss of scale reduces operating leverage, weakens supplier/partner bargaining power, and limits fixed-cost absorption. Without clear evidence of demand recovery or new long-term contracts, revenue erosion threatens profitability and planning visibility over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
The shift to consistent positive operating and free cash flow represents a durable improvement in internal funding ability. Over the next several months this reduces reliance on external financing, supports working-capital needs and gives management room to prioritize stabilization or selective reinvestment despite ongoing losses.
Read all positive factors

SemiLEDs (LEDS) vs. SPDR S&P 500 ETF (SPY)

SemiLEDs Business Overview & Revenue Model

Company Description
SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, components, and modules and systems in the United States, Taiwan, the Netherlands, Japan, and internationally. The company also sells enhanced vertical, LED p...
How the Company Makes Money
SemiLEDs makes money primarily by selling LED-related products to customers (typically other manufacturers and integrators) that incorporate these components into finished lighting and display products. Key revenue streams historically include: (1...

SemiLEDs Financial Statement Overview

Summary
Mixed fundamentals: cash flow is a clear positive (TTM operating cash flow and free cash flow are both solidly positive with sharp improvement), but the income statement remains pressured with a material TTM revenue decline (~24.9%), negative profitability, and very thin/compressing gross margin. Balance sheet leverage has improved but is still elevated (TTM debt-to-equity ~1.67) while returns remain negative.
Income Statement
26
Negative
Balance Sheet
38
Negative
Cash Flow
62
Positive
BreakdownTTMAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue25.93M43.01M5.18M5.98M7.05M4.74M
Gross Profit2.71M2.43M1.05M1.01M1.40M1.03M
EBITDA-401.00K-272.00K-1.17M-1.40M-1.42M-1.59M
Net Income-1.02M-1.13M-2.04M-2.69M-2.74M-2.85M
Balance Sheet
Total Assets17.54M15.59M11.14M13.46M16.05M18.24M
Cash, Cash Equivalents and Short-Term Investments5.98M2.59M1.67M2.57M4.27M4.83M
Total Debt2.35M2.85M4.82M7.74M8.51M9.31M
Total Liabilities14.46M12.81M8.89M12.26M12.56M13.61M
Stockholders Equity3.08M2.78M2.20M1.15M3.45M4.59M
Cash Flow
Free Cash Flow3.88M1.64M-488.00K-1.18M-1.79M-1.85M
Operating Cash Flow4.03M2.21M-365.00K-984.00K-1.51M-1.74M
Investing Cash Flow-127.00K-595.00K-101.00K-321.00K-113.00K159.00K
Financing Cash Flow-465.00K-622.00K-449.00K-456.00K490.00K3.99M

SemiLEDs Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.15
Price Trends
50DMA
1.99
Positive
100DMA
1.76
Positive
200DMA
1.88
Positive
Market Momentum
MACD
0.18
Negative
RSI
51.10
Neutral
STOCH
39.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEDS, the sentiment is Positive. The current price of 2.15 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 1.99, and above the 200-day MA of 1.88, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 39.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEDS.

SemiLEDs Risk Analysis

SemiLEDs disclosed 48 risk factors in its most recent earnings report. SemiLEDs 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

SemiLEDs Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
$38.24M0.60-2573.87%-38.72%16.01%
57
Neutral
$17.62M-16.38-43.09%-16.64%-79.86%
51
Neutral
$100.92M247.031.02%64.13%1224.00%
46
Neutral
$169.99M-5.13-29.33%11.92%7.07%
43
Neutral
$169.19M-2.2760.21%-32.54%-89.88%
41
Neutral
$9.83M-0.78-171.32%-40.57%75.19%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LEDS
SemiLEDs
2.13
0.63
42.00%
PRSO
Peraso
0.65
-0.22
-25.43%
PXLW
Pixelworks
6.01
-4.64
-43.57%
TRT
Trio-Tech International
9.98
7.15
252.77%
VLN
Valens
1.57
-0.85
-35.12%
GCTS
GCT Semiconductor Holding
1.86
0.51
37.78%
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, 2026