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

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

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 Trading Down 12.1%

Shares of GSIT opened at $3.20 on Friday. GSI Technology has a 12 month low of $3.07 and a 12 month high of $13.00. The firm’s 50 day moving average is $4.89 and its 200-day moving average is $6.65. The stock has a market capitalization of $122.99 million, a PE ratio of -6.96 and a beta of 2.26.

Analyst Ratings Changes

GSIT has been the subject of several research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of GSI Technology in a report on Thursday, October 15th. Wall Street Zen raised GSI Technology from a “strong sell” rating to a “sell” rating in a report on Saturday, October 10th. Williams Trading set a $9.00 price objective on GSI Technology in a research report on Monday, September 14th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $9.00 price objective on shares of GSI Technology in a research report on Thursday, October 22nd. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $9.00.

About GSI Technology

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.