GSI Technology (NASDAQ:GSIT) Issues Quarterly Earnings Results, Misses Expectations By $0.06 EPS

GSI Technology (NASDAQ:GSIT) posted its quarterly earnings data on Thursday. The semiconductor company reported ($0.18) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.06), FiscalAI reports. The company had revenue of $6.02 million during the quarter, compared to the consensus estimate of $6.25 million. GSI Technology had a negative net margin of 62.90% and a negative return on equity of 21.39%.

Here are the key takeaways from GSI Technology’s conference call:

• Gemini-II reached a commercial milestone: Taiwan’s Hsinchu County accepted the initial stage of the Smart Guardian Eye project, and the system is now providing live AI video monitoring and incident reports across about 20 cameras. An expansion to roughly 80 cameras is possible, but depends on a competitive procurement process.
• GRIN is progressing toward customer release: GSI said the AI development toolkit has cut some model-adaptation tasks to less than a week, from work that previously took about a month or longer. Initial customer availability is expected before the end of December 2026, with commercial release planned for the first half of calendar 2027.
• Plato remains on schedule: The next-generation APU is targeted for tape-out in March 2027, with initial sampling expected by late summer 2027; GSI says it is designed for inference below 10 watts. The company is discussing strategic partnerships to help develop and commercialize the chip, but no agreements have been signed.
• Near-term financial results face pressure from supply constraints and costs: Fiscal Q2 revenue was $6 million and gross margin was 48.5%, below guidance, as manufacturing costs rose and shipments were delayed by inventory shortages and longer lead times. GSI expects Q3 revenue of $5 million–$6 million and gross margin of about 38%–40%; it plans price increases, but said any recovery may begin in Q4.

GSI Technology Stock Down 12.1%

Shares of GSIT stock traded down $0.44 during trading on Thursday, reaching $3.20. The company’s stock had a trading volume of 814,704 shares, compared to its average volume of 1,090,664. GSI Technology has a one year low of $3.07 and a one year high of $13.00. The business has a fifty day moving average price of $4.94 and a 200-day moving average price of $6.67. The company has a market cap of $122.98 million, a price-to-earnings ratio of -6.96 and a beta of 2.26.

Analysts Set New Price Targets

Several analysts have issued reports on GSIT shares. Needham & Company LLC reissued a “buy” rating and issued a $9.00 price target on shares of GSI Technology in a research note on Thursday, October 22nd. Wall Street Zen raised GSI Technology from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 10th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of GSI Technology in a research report on Thursday, October 15th. Finally, Williams Trading set a $9.00 price objective on GSI Technology in a report on Monday, September 14th. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $9.00.

GSI Technology Company Profile

GSI Technology, Inc is a semiconductor company that develops and supplies high-performance memory and processing solutions. Its product portfolio has historically included static random-access memory (SRAM) devices, including synchronous SRAM products designed for applications requiring fast data access and high bandwidth.

The company also develops associative processing technology for data-intensive computing. Its Gemini Associative Processing Unit (APU) platform is designed to accelerate workloads such as artificial intelligence inference, natural-language processing, similarity search and other applications that involve searching large data sets.